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- Advanced Micro Devices reported first-quarter earnings Wednesday that beat Wall Street expectations.
- The chipmaker reported adjusted earnings of $0.11 per share on revenue of $1.65 billion.
- Follow AMD's stock price in real-time here.
Shares of AMD (Advanced Micro Devices) soared more than 7% in after-hours trading Wednesday after the chip maker's first-quarter results topped analyst expectations.
The company said it earned an adjusted $0.11 per share, outpacing the $0.09 that analysts surveyed by Bloomberg were expecting. Revenue was $1.65 billion, which was ahead of the $1.57 billion that Wall Street was anticipating.
"The first quarter was an outstanding start to 2018 with 40 percent year-over-year revenue growth,” said Lisa Su, AMD's president and CEO, in a press release. "PC, gaming and datacenter adoption of our new, high-performance products continues to accelerate. We are excited about our long-term roadmaps and focused on delivering sustained revenue growth and profitability."
The crypto craze that peaked in January provided a boost for GPU makers like AMD and its competitor NVDA. But as prices have fallen in 2018, so too has would-be miners interest in the chips that were traditionally only popular among PC gamers.
"Ultimately, we don’t believe Crypto GPU Rev is sustainable and see 3 potential issues: (1) Price volatility in Ethereum which makes mining less economical, (2) Bitmain’s Ethereum ASIC scheduled for release in July, and (3) An increased probability of Crypto moving from proof-of-work to proof-of-stake negating the need for mining/GPUs all together," Credit Suisse analyst John Pitzer warned clients ahead of the earnings report.
AMD did not directly mention cryptocurrencies in its quarterly filing — but will almost certainly be asked about their impact on its bottom line by analysts on the conference call later Wednesday evening.
"AMD had a blowout revenue quarter, beating guidance and growing 40% year on year which would make it the third straight quarter of double digit YoY revenue growth," Patrick Moorhead, an analyst at Moor Insights & Strategy, said in an email. "The growth was led by sales of AMD's Ryzen client CPU and APU product line in desktops and notebooks. I expect AMD to show even more gains next quarter based on channel fill of second generation Ryzen desktop CPU, increased distribution of Ryzen mobile notebooks and the continued ramp of EPYC server deployments.”
Shares of AMD are down 10% since the beginning of the year.
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