What happened
Shares of Advanced Micro Devices (AMD 3.46%) jumped 12.5% to a new closing high of $76.09 on Wednesday, following the semiconductor company's impressive second quarter results.
So what
AMD's revenue surged 26% year over year to $1.93 billion, fueled by market share gains and strong sales of its Ryzen and EPYC processors. "We delivered strong second-quarter results, led by record notebook and server processor sales as Ryzen and EPYC revenue more than doubled from a year ago," CEO Dr. Lisa Su said in a press release.
Advanced Micro Devices' stock hit a record high on Wednesday. Image source: Getty Images.
Better still, sales of Ryzen and EPYC processors generate higher profit margins for AMD than sales of some of its other chips. In turn, AMD's gross margin improved by 3 percentage points year over year to 44%.
All told, AMD's adjusted operating and net income more than doubled to $233 million and $216 million, respectively.
Now what
These outstanding results prompted AMD to boost its full-year financial guidance. The company is now forecasting 2020 revenue growth of roughly 32%, driven by broad-based gains across its personal computer, data center, and gaming products.
"Despite some macroeconomic uncertainty, we are raising our full-year revenue outlook as we enter our next phase of growth driven by the acceleration of our business in multiple markets," Su said.
