AMD had guided revenue to come in about $1.25 billion, plus or minus $50 million for the first quarter of 2019. The company’s earnings came in line with the estimates and revenue missed modestly Street’s views. Revenue from Computing and Graphics grew 9% year-over-year, driven by the strong sales of Ryzen processors. Enterprise, Embedded and Semi-Custom segment revenue was flat compared to the year-ago quarter.
The launch of AMD’s flagship AMD Ryzen Embedded V1000 and AMD EPYC Embedded 3000 processors in 2018 have resulted in new and expanded partnerships with industry leaders like Advantech, Supermicro, Mentor, congatec and IEI. Last month, the Santa Clara, California-based firm announced that Google (GOOGL) selected AMD Radeon datacenter GPUs for its Vulkan and Linux-based cloud gaming service Google Stadia.
A solid product ramp-up from AMD combined with Intel’s failure are boosting AMD’s CPU sales. Intel, which reported its recently ended quarter’s results on Thursday, plunged 9% on issuing a weak outlook for 2019. However, AMD is still behind Nvidia (NVDA) in the GPU market and its GPU revenue has been affected in part by the volatility of the cryptocurrency mining market.
Peers ON Semiconductor (ON) and NXP Semiconductors (NXP) will be reporting their quarterly results on Monday. Lam Research (LRCX) reported its Q3 results on Wednesday and the stock surged as the results exceeded expectations.
Earlier this month, Nomura initiated the coverage with a Buy rating on AMD. Shares of AMD, which closed up 0.80% at $27.88 on Friday, have climbed up 51% since the beginning of this year and soared 153% in the past 12 months. The Philadelphia Semiconductor Index has registered a growth of 34% in the year-to-date period and 22% growth in the past one year.