Jan 31 (Reuters) - U.S. chip maker Advanced Micro Devices Inc (AMD.O) on Tuesday posted revenue that beat Wall Street targets and said it expected business to improve in the second half, enthusing investors who saw the company gaining on rival Intel.
Shares rose about 1.5% in after hours trading. Although AMD's forecast was behind expectations, it was not as weak as some worried. Recent earnings reports for both Intel and AMD show the once fast growing data center business will be more challenging for all chip makers as companies adjust their spending.
"AMD remained resilient and even made gains in their datacenter chips...against Intel," said Wayne Lam analyst at CCS Insight.
Chief Executive Lisa Su said she was confident AMD will keep gaining market share this year and that the second half would be stronger than the first.
While Intel Corp. (INTC.O) still dominates the PC and server processing chip markets with a share exceeding 70%, that is down from more than 90% in 2017, according to tech research firm IDC. A big chunk of that share was taken by AMD.