The competitive pressures against Intel (NASDAQ: INTC) are getting more real by the quarter. Advanced Micro Devices (NASDAQ: AMD) reported second quarter results that beat consensus estimates, sending the stock to a yearly high. There is no doubt now that the chip maker is on the path upward.
AMD earned $0.14 a share as revenue jumped 53% to $1.76 billion. Shorts will have no choice now but to cover the bet against the stock. The company reaffirmed its confidence for the long term, as its technology advancements gives it an edge over Intel:
"We had an outstanding second quarter with strong revenue growth, margin expansion and our highest quarterly net income in seven years," said Dr. Lisa Su, AMD president and CEO. "Most importantly, we believe our long-term technology bets position us very well for the future. We are confident that with the continued execution of our product roadmaps, we are on an excellent trajectory to drive market share gains and profitable growth."
Looking into next quarter, AMD expects gross margin will improve from 37% in Q2 to 38% for Q3.
Intel’s poor performance only asserts the strength AMD will have in the quarters ahead. More recently, news that Intel’s i9 is so hot on the MacBook Pro that its clock speed is getting throttled will hurt its reputation. This could push Apple (NASDAQ: AAPL) to power the MBPs with a Ryzen-based solution.
