AMD Jumps After Beating On Earnings, Raising Forecast

Advanced Micro Devices Inc. managed to squeak out an adjusted profit in the second quarter thanks to stronger revenue than expected, sending the chip stock on another hot ride in late trading. The company reported a loss of $16 million, or 2 cents a share, on sales of $1.22 billion for the quarter. After adjusting for stock-based compensation and other effects, the company claimed a profit of 2 cents a share. Analysts on average expected AMD to report a breakeven quarter on an adjusted basis on sales of $1.16 billion, according to FactSet. The company also raised its forecast, of great importance to investors looking for new products to boost AMD. AMD now says annual revenue will increase by a mid- to high-teens percentage, after previously projecting low double-digit percentage growth. AMD shares jumped about 8% in immediate after-hours trading following the report's release, putting shares higher than $15 after they closed at $14.11.