NEW DELHI: Advanced Micro Devices Inc, Intel Corp’s main competitor in computer processors, posted sales that beat analysts’ estimates as more personal-computer makers build products based on AMD chips.
Revenue rose 40 percent to $1.65 billion, AMD said today in a statement. That compares with the $1.55 billion average of estimates compiled by Bloomberg. Profit, minus certain items, was 11 cents a share. Analysts projected 6 cents.
PC makers including Sony Corp. added laptop models that use its chips, Sunnyvale-based AMD said. The company increased its profitability, widening its gross margin by 8 percentage points to 45 percent in the quarter. Corporations are beginning to replace older PC networks and add servers to data centers, boosting demand for semiconductors, Intel said this week.
“The numbers look good across the board,” said Doug Freedman, an analyst at Gleacher & Co. in San Francisco, who recommends buying the stock. “We’re seeing pretty strong margin results.”
AMD rose 11 cents, or 1.5 percent, in late trading to $7.47, after falling 3 cents to $7.41 today on the New York Stock Exchange. The stock has dropped 23 percent this year.
The company said it expects revenue to be “up seasonally” in the current quarter. Sales will increase 5 percent to 10 percent from the second quarter, Chief Financial Officer Thomas Seifert said on a conference call.
The company is “feeling good” about PC consumption for the rest of the year, said Chief Executive Officer Dirk Meyer.
Revenue rose 40 percent to $1.65 billion, AMD said today in a statement. That compares with the $1.55 billion average of estimates compiled by Bloomberg. Profit, minus certain items, was 11 cents a share. Analysts projected 6 cents.
PC makers including Sony Corp. added laptop models that use its chips, Sunnyvale-based AMD said. The company increased its profitability, widening its gross margin by 8 percentage points to 45 percent in the quarter. Corporations are beginning to replace older PC networks and add servers to data centers, boosting demand for semiconductors, Intel said this week.
“The numbers look good across the board,” said Doug Freedman, an analyst at Gleacher & Co. in San Francisco, who recommends buying the stock. “We’re seeing pretty strong margin results.”
AMD rose 11 cents, or 1.5 percent, in late trading to $7.47, after falling 3 cents to $7.41 today on the New York Stock Exchange. The stock has dropped 23 percent this year.
The company said it expects revenue to be “up seasonally” in the current quarter. Sales will increase 5 percent to 10 percent from the second quarter, Chief Financial Officer Thomas Seifert said on a conference call.
The company is “feeling good” about PC consumption for the rest of the year, said Chief Executive Officer Dirk Meyer.
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