Chipmaker AMD forecasts current-quarter revenue above estimates

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(Reuters) – Advanced Micro Devices Inc (AMD.O) forecast current-quarter revenue above analysts’ estimates and raised its full-year expectations, betting on robust demand for its graphics chips and its new Ryzen processors for PCs.

The company’s shares rose 8.2 percent to $15.27 in extended trading on Tuesday.

AMD said it now expected annual revenue to increase by “a mid to high-teens percentage”, compared with its previous forecast of low double-digit percentage revenue growth.

The chipmaker also said it expected current-quarter revenue to increase about 23 percent from the second quarter, which represents a mid-point of about $1.50 billion, plus or minus 3 percent.

Analysts on average were expecting $1.39 billion, according to Thomson Reuters I/B/E/S.

Sales in AMD’s unit that makes processors, such as the Polaris chips used in PCs, rose 51.5 percent to $659 million in the second quarter.

The company reported a net loss of $16 million, or 2 cents per share, in the three months ended July 1, compared with a profit of $69 million, or 8 cents per share, a year earlier.

The year-ago quarter included a $150 million pre-tax gain related to its ATMP (assembly, test, mark and pack) joint venture transaction.

Excluding items, the company earned 2 cents per share.

Analysts on average had expected the company to breakeven on a per share basis.

Revenue rose 19 percent to $1.22 billion, ahead of analysts’ average estimate of $1.16 billion.

Reporting by Anya George Tharakan in Bengaluru; Editing by Sriraj Kalluvila