What happened

Shares of Advanced Micro Devices (NASDAQ:AMD) have run sharply higher this week, surging as high as 14.7%. As of 2:16 p.m. EDT Thursday, the stock was up 14.5%. The semiconductor company was riding the wave of breakout financial results for the second quarter.

Not only did the chipmaker easily clear Wall Street's expectations, but its growth accelerated from the already robust results it achieved in the first quarter.

A computer circuit board backlit in purple and blue.

Image source: Getty Images.

So what

AMD reported record revenue of $3.85 billion, which jumped 99% year over year, and accelerated 12% compared to the already impressive results it generated in the first quarter. The surge in profits was even more robust, with adjusted earnings per share (EPS) of $0.63, which soared 250%.

To put those numbers into perspective, analysts' consensus estimates were calling for revenue of $3.62 billion and EPS of $0.54. 

AMD pointed to increased processor sales and higher average selling prices (ASPs) as significant factors in its better-than-expected results. Expanding gross profit margin helped boost the bottom line.

Now what

AMD expects to continue its growth streak into the third quarter. Management is forecasting revenue of roughly $4.1 billion (plus or minus $100 million). This would represent growth of 46% year over year, and an acceleration of 6% quarter over quarter. That's well ahead of analysts' consensus estimates of $3.82 billion. 

CEO Lisa Su downplayed the current shortages in the semiconductor industry, saying the company would continue to grow and gain market share throughout 2021. Su also said she expects the current supply chain issues to improve sometime next year. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.