Shares of Advanced Micro Devices soared after the company raised its outlook and reported earnings that topped expectations. The stock surged 10 percent as more than 21 million shares changed hands on Tuesday.
Tech analyst Patrick Moorhead said there may be more good news ahead for AMD. “AMD has a lot to look forward to as none of their actuals incorporates sales of EPYC server parts, only limited sales of the new Radeon Vega and none of the Ryzen notebook parts.”
AMD said it now expects third-quarter revenue to increase about 15 percent year over year. That figure implies third-quarter revenue of about $1.50 billion. The company said it also sees annual revenue growth better than its previous expectation. Wall Street previously projected full-year revenue growth of about 12.8 percent.
AMD’s optimistic during its Tuesday earnings call, it’s in the process of catching up with demand and is ramping up production to replenish its inventory. In June, the stock jumped after the company told CNBC that the dramatic rise in digital currency prices has driven demand for its graphics cards. At the time, major computer hardware retailers had sold out of AMD’s recently launched RX 570 and RX 580 models.
While Bitcoin prices have seen some recent turbulence. Bitcoin has still more than doubled in value for the year. Cryptocurrency miners use graphics cards from AMD and Nvidia to “mine” new coins. AMD traditionally has a better reputation for mining cryptocurrencies.
During its earnings call, AMD said, however, that its still prioritizing its core gaming market. The company said it’s continuing to watch developments in digital currencies.