AMD reported first-quarter earningsAfter Tuesday’s bell, the stock rose over 3% to surpass analyst expectations for earnings and revenues.

This is how Refinitiv’s consensus estimates for the March quarter compare to the results of the chipmaker:

• EPS$1.13 adjusted versus $0.91 anticipated, an 117% increase year-over-year
• RevenueThe expected $5.89 trillion is higher than the $5.52billion, which was 71% more year-over-year

AMD stated that it expects $6.5 billion in revenue in the current quarter. This is higher than analyst estimates of $6.38 trillion.

AMD released its results Tuesday, showing that it is growing strongly. The chipmaker saw 71% growth in sales and each of its lines of business grow by double digits.

AMD’s server-chip business (which primarily competes against Intel) is one of its highlights. Some data points indicate that AMD is gaining market share while trying to regain its manufacturing capabilities.

After two consecutive years of record shipments, some analysts believe PC sales will shrink in this year. This is after a period where they exploded because so many people required laptops to do their jobs remotely. Some analysts believe the PC pandemic is over. However, AMD, the company that supplies many desktops and laptops with the core processor, doesn’t seem to be feeling it.

The AMD computing and graphics segment reported PC sales, up 33% annually and 8% more than December quarter.

According to AMD, cloud server sales have increased by 88%, reaching $2.5 Billion in the Semi-custom and Enterprise segments. AMD stated that the increase was due to both higher semi-custom and server processor sales. These chips are used in the core of gaming consoles such as the Playstation 5.

AMD stock suffered a tough 2022. It dropped over 39% after an amazing 2021 where its sales increased 68% while gross margin was 48%. In the face of rising inflation risks, investors are avoiding semiconductor stocks.

Last week, Intel gave a disappointing forecastWeak PC demand and macroeconomic problems were the main reasons for lower PC sales in June.

AMD stated that the company had closed the acquisition of Xilinx within the current quarter. This deal was concluded on March 1. originally announced in 2020Its price is $35 billion. AMD stated that six weeks of the revenue it earned from this deal was included in its earnings.