Advanced Micro Devices jumps after Q1 results top expectations, boosts guidance
Advanced Micro Devices (NASDAQ:AMD) shares rose after the semiconductor giant posted first-quarter results that beat expectations and raised its full-year guidance.
For the period ending March 26, 2022, the Lisa Su-led AMD (AMD) said it earned $1.13 per share on non-GAAP basis with revenue coming in at $5.88 billion, up 71% year-over-year thanks to its computing and Graphics and Enterprise businesses, as well as the inclusion of Xilinx revenue.
Excluding its Xilinx acquisition, AMD said it generated $5.32 billion in revenue.
Leading the way during the quarter was revenue attributed to its Computing and Graphics segment, which saw sales rise 33% year-over-year to $2.8 billion, thanks to AMD's Ryzen and Radeon processors.
Revenue attributed to its Enterprise, Embedded and Semi-Custom segment came in at $2.5 billion, up 88% year-over-year and 13% sequentially, thanks to higher revenue from its EPYC processor, semi-custom and embedded product sales. 
Xilinx contributed $559 million in revenue during the quarter, after the deal closed in mid-February. 
Wall Street analysts were expecting the company to generate $5.57 billion in revenue during the period.
On an adjusted basis, gross margins, a closely watched measure for semiconductor companies, came in at 53%, the company said.
AMD (AMD) shares rose more than 4% to $94.92 in after-hours trading. 
Santa Clara, California-based AMD (AMD) ended the quarter with $6.5 billion in cash and cash equivalents and bought back $1.9 billion in stock during the period.
For the second-quarter, the Su-led AMD (AMD) said it expects revenue to be between $6.3 billion and $6.7 billion, compared to estimates of $6.03 billion.
In addition, AMD (AMD) also raised its full-year guidance, saying it now expects to generate $26.3 billion in revenue, up 60% year-over-year, up from a previous outlook of 31%. The increase is due in part to the Xilinx acquisition as well as higher server and semi-customer revenue.
It also expects non-GAAP gross margins to be 54% during the year, up from a prior outlook of approximately 51%. 
The company will hold a conference call at 5 p.m. EST to discuss the results.
Last month, Bank of America said Advanced Micro Devices (AMD) and a few other chip companies should benefit from the strong cloud results posted by some of the larger tech companies.