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Stock Analyst Update

AMD Exceeds Greatest of Expectations, Again

Chipmaker's first-quarter earnings obliterate analyst estimates.


Once known as Intel's (INTC) perennial whipping boy, Advanced Micro Devices (AMD) is giving the leader of the personal-computer microprocessor market a legitimate run for its money.

Driven by strong demand across the board, AMD's first-quarter earnings were good enough to make even the staunchest skeptics take heart. The chipmaker reported earnings of $1.15 per share, or 120% better than the average $0.52-per-share analyst estimate compiled by First Call. These results were driven by impressive sales growth and margin improvements. Sales grew by more than 70% over the first quarter of 1999, and the company's profit margins were 17%-- much better than its margins over the past few quarters.

Jeremy Lopez does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.