Advanced Micro Devices Inc. (AMD) shares rose to a new record high as the chip company announces an increase in revenues for the second quarter of 2020.
While top rival Intel seems to face delays in the production of its next-generation processors, sales of AMD-powered PCs are on a roll.
Sales of AMD’s Ryzen and EPYC processors delivered the bulk of the $1.93 billion in revenues for the second quarter of the year.
In turn, AMD shares rallied to over 12.5% to a new closing high of $76.09 on Wednesday fueled by the company’s impressive second-quarter result which grew by 26 percent year-over-year.
For this year, AMD shares have already risen to 66% due to increased sales of its Ryzen and EPYC processors taking the lead in the 7-nanometer next-generation chips market.
This is in sharp contrast to Intel’s delayed release of its 7nm chips which is still slated for production by late 2022 or early 2023.
AMD President and Chief Executive Officer Dr. Lisa Su, on Tuesday’s earnings call, said their strong second-quarter results and increased full-year revenue demonstrate how they are ‘scaling up the business’ through consistent execution.
“We delivered strong second-quarter results, led by record notebook and server processor sales as Ryzen and EPYC revenue more than doubled from a year ago,” the AMD top executive said.
Growth in Ryzen processor sales also offset lower graphic processor sales, the company reported. The Sta. Clara, California-based microchip manufacturer also delivered its highest client processor sales in more than 12 years.
The Covid-19 pandemic also drove PC sales up due to millions of people working or schooling from home. With continuing demand for excellent processor performance, AMD officials say they will continue rolling out new notebooks and mobile devices powered by their energy-efficient and fast Ryzen processors.
To date, there are now 54 Ryzen 4000 powered notebooks in the market. The Silicon Valley-based chipmaker also guaranteed to accelerate mobile processor offerings as companies like HP and Lenovo are slated to offer their first commercial notebooks powered by Ryzen Pro 4000 series processors.
“Despite some macroeconomic uncertainty, we are raising our full-year revenue outlook as we enter our next phase of growth driven by the acceleration of our business in multiple markets,” the company executive added in a statement.
Read More: Intel delays 7nm next-generation chips until 2022
