Not to be shown up by rival Intel's (INTC) blockbuster earnings this week, Advanced Micro Devices (AMD) on Thursday reported a second-quarter 45% net income increase. The chipmaker's strong earnings signals a return to the product demand for PCs and services, and overall technology spending.
Wall Street anticipated that Sunnyvale, Calif.-based company would turn in a profit of 6 cents a share on revenue of $1.55 billion. The world's No. 2 maker of microprocessors behind Intel, reported revenues of $1.65 billion, or 6 cents a share. Net income was set at $125 million, compared to a loss of $249 million a year ago quarter.
In the same quarter last year, AMD lost 49 cents a share on revenue of $1.18 billion.
"Robust demand for our latest mobile platforms and solid execution drove record second-quarter revenue and a healthy gross margin," said Dirk Meyer, AMD President and CEO.
AMD's stock fell about 0.5%, or 3 cents, to close at $7.41 a share. Its stock has wavered between $3 and $10 over the past year.
In a research note, Auriga USA's Daniel Berenbaum said: "Intel's gain is likely AMD's pain," pointing to AMD's secondary position in the server market.
Intel this week reported its biggest quarter in its 42-year history, with a profit of $2.9 billion, or 51 cents a share. A year ago, it lost $398 million and dropped 7 cents a share.
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