AMD reported better-than-expected second quarter results as sales surged 26% on strong demand for Ryzen PC chips and Epyc server processors.The companyreported net incomeof $157 million, or 13 cents a share, on revenue of $1.93 billion. Non-GAAP earnings were 18 cents a share.
Wall Street was expecting AMD to report second quarter revenue of $1.86 billion with non-GAAP earnings of 16 cents a share.
AMD CEO Lisa Su said the Ryzen and Epyc revenue more than doubled in the quarter compared to a year ago. The company is also upping its outlook. The company projected third quarter revenue of about $2.55 billion, give or take $100 million, up 42% from a year ago."The year-over-year and sequential increases are expected to be primarily driven by Ryzen and EPYC processor sales and next generation semi-custom products," said the company.
AMD's results land as its primary rival Intel has been struggling with its 7nm roadmap delays.Intel also shook up its technology management, but the misfires have given AMD a chance to cut into its larger rival's market share. But AMD also battles Nvidia in graphics chips.
Simply put, AMD still lives in one competitive neighborhood, but is winning deals with hyperscale cloud players and becoming a viable option in more data centers.
The bullish sentiment around AMD revolves around its server market share and Epyc. AMD has roughly 3% market share of the server market but reached 20% previously with Opteron. Wedbush strategist Brad Gastwirth said in a research note that AMD can gain more server share:
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