What happened

Shares of MagnaChip Semiconductor (MX -2.23%) jumped on Wednesday after the semiconductor manufacturer updated its guidance for the second quarter. MagnaChip raised its outlook for both revenue and gross margin, leading investors to push the stock up 11.9% by 1:15 p.m. EDT.

So what

MagnaChip now expects to report revenue of at least $194 million in the second quarter, which ends on June 30. That's up substantially from the company's prior revenue guidance of $173 million to $181 million.

A circuit board.

Image source: Getty Images.

Previously, MagnaChip had called for 30% revenue growth from its OLED display drivers and flat revenue from its foundry business relative to the first quarter. However, the company now expects both businesses to exceed those initial expectations. The power standard products business is also performing better than first anticipated.

MagnaChip also raised its guidance for gross margin, now forecasting that metric to be at least 21% in the second quarter. That's up from previous guidance calling for gross margin between 16% and 18%.

Now what

In addition to boosting its guidance, MagnaChip also said that its strategic evaluation of its foundry business is ongoing. The company is still considering a variety of options, including joint ventures, strategic partnerships, and acquisitions.

MagnaChip will report its full second-quarter results after the market closes on July 30. With those results now predicted to surpass expectations, it's no surprise the stock is soaring.