What happened

Advanced Micro Devices (NASDAQ:AMD) trounced the market last month by gaining 22%, compared to a 3.6% increase in the S&P 500, according to data provided by S&P Global Market Intelligence.

^SPX Chart

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The boost added to a strong rally for shareholders, who've seen their stock gain 80% so far in 2018.

So what

Investors started pushing shares higher last month in anticipation of strong quarterly results from the chip giant. AMD didn't disappoint. Sales spiked 53%, the company revealed late in the month, thanks to growth across its gaming, computing, and data center business lines.

An engineer works on a computer chip.

Image source: Getty Images.

Gross profit margin rose to 37% of sales from 34%, in what CEO Lisa Su called an "outstanding" quarter. "We are on an excellent trajectory to drive market share gains and profitable growth," Su said.

Now what

AMD expects sales growth to slow to just 7% in the fiscal third quarter while profitability continues improving. Revenue gains will be driven by its new Ryzen and EPYC franchises, which should more than make up for declines of high-powered graphics products due to a pullback in the blockchain market.

Demitrios Kalogeropoulos has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.