Advanced Micro Devices increased its second-quarter net profit 4.5 times and doubled its revenue. AMD's quarterly revenue increased to $ 3.9 billion from $ 1.9 billion a year earlier on the consensus forecast of $ 3.6 billion. The company's net income last quarter was $ 710 million, or $ 0.58 per share, up from $ 157 million , or $ 0.13 per share, for the same period of the previous year. Earnings excluding one-off factors were $ 0.63 per share, beating the market consensus of $ 0.54 per share. The management noted that the company's business is growing faster than the market as a whole.
Revenue for the Computing and Graphics Chip Division rose 65% last quarter to $ 2.25 billion, driven by higher chip prices and increased sales. Revenue for the business unit, which sells products for data centers and game consoles, soared 183% to $ 1.6 billion. The business unit supplies chips for Microsoft and Sony game consoles. Thanks to strong quarterly results, AMD executives improved their annual revenue forecast. The figure is expected to rise 60% from the previously expected 50%. Revenue in the third quarter, according to management estimates, will be $ 4.1 billion, which is better than the consensus forecast of $ 3.82 billion.
The Xilinx acquisition will allow AMD (due to close in late 2021) to significantly expand its product portfolio and customer base in a number of growing markets where Xilinx is a recognized leader. The deal will strengthen AMD's position in the chip industry for equipment used in data centers, giving the combined company a competitive edge over Intel. We believe that the deal will have a positive financial impact. Strong support for the company's capitalization can be provided by strengthening its position in the server processor market. AMD's share could triple over the next two years due to Intel's declining share.
Advanced Micro Devices is a global fabless semiconductor company that develops hardware (CPUs, GPUs and MPUs) and accompanying software targeting computing applications in the desktop, notebook, embedded, server, and gaming markets.