Advanced Micro Devices Inc., the second-largest maker of personal computer processors, gained in late trading after the company topped second-quarter estimates and said it was making further inroads in artificial intelligence computing.
Second-quarter earnings were 58 cents a share, excluding some items, compared with an estimate of 57 cents. Revenue came in at $5.36 billion, versus a projection of $5.32 billion.
The company pointed to gains in AI accelerators, an area dominated by Nvidia Corp. “Our AI engagements increased by more than seven times in the quarter as multiple customers initiated or expanded programs supporting future deployments of Instinct accelerators at scale,” Chief Executive Officer Lisa Su said in a statement.
Third-quarter revenue will be $5.4 billion to $6 billion, the company said. That compares with an average analyst estimate of $5.84 billion.
AMD expects data center demand to improve in the second half of the year, countering fears that customers will hold off on server spending in favor of new AI technology.
The shares about 3% in extended trading following the announcement. They had closed earlier at $117.60, leaving the stock up 82%, a gain that’s made it the second-best performing stock on the Philadelphia Stock Exchange Semiconductor Index this year.
