What: After Advanced Micro Devices (AMD -3.38%) reported better-than-expected second-quarter results on Thursday following the market close, shares of the semiconductor company jumped as much as 14.4% on Friday, and are up 12% at the time of this writing. This extends the stock's incredible performance recently; shares are up about 190% in the past six months.
AMD Radeon RX 480 graphics card. Image source: AMD.
So what: Investors are likely upbeat about AMD because the company's loss per share was narrower than expected, and its revenue was higher than expected. Adjusted to exclude one-time items, AMD reported a loss of $0.05 per share, better than analysts' consensus estimate for an $0.08 loss. Revenue increased 9% to $1.027 billion -- above analysts' consensus estimate for revenue of $951.3 million. Further, the company returned to non-GAAP operating profitability one quarter ahead of schedule, reporting non-GAAP operating income of $3 million.
"In the second quarter we accomplished a significant milestone as we returned to non-GAAP operating profitability based on solid execution and strong demand for our semi-custom and graphics products," said CEO Lisa Su.
Now what: Going forward, Su is optimistic, expecting strength in the company's semi-custom products and its latest Radeon RX and 7th Generation A-Series APUs "to drive growth and market share gains in the second half of the year."
