There was nothing “cryptic” about Advanced Micro Devices’ performance on Wednesday, as the company’s shares surged as much as 10 percent following a strong quarterly report and better-than-expected sales outlook from the chipmaker.
AMD rose to as high as $15.65 share — a level not seen since 2007 — as investors showed enthusiasm for the company’s second-quarter results. Late Tuesday, AMD reported a profit of 2 cents a share on $1.22 billion in revenue, which surpassed Wall Street analysts’ expectations that AMD would break even on sales of $1.16 billion.
AMD said its results have been helped by its new Ryzen processors, Epyc chips used in data centers and Vega graphics processors.
One thing that is giving AMD a boost is something the average person might not know about, or even think is real: cryptocurrency.
The rise in prices of such digital currency has been a boon to AMD. Coindesk, which tracks the price of digital currencies, said one such payment method called Ethereum has gone up by 2,400 percent this year, while bitcoin is up by 160 percent.
And cryptocurrency “miners” like to use AMD’s graphics cards to “mine” for new digital coins, in the hopes that those coins will go up in value.
The company also said that for its third quarter, it expects revenue to rise 15 percent over the same period a year ago, which would put AMD’s sales at about $1.5 billion, or $100 million more than earlier analysts’ forecasts.
Photo: AMD Chief Executive Lisa Su at a company product announcement in San Francisco on Aug. 17, 2016. On Wednesday, AMD shares climbed to their highest point in 10 years after the chipmaker’s upbeat quarterly results and forecast. (Paul Sakuma Photography)
Tags: AMD, chips, Earnings