Advanced Micro Devices (AMD  ) shares were up 8% following the company's better than expected Q1 results and guidance for the next quarter and full year. AMD's earnings are ratifying the same message as other semiconductor companies which shows that tech spending on the consumer side has definitely slowed, but enterprise spending remains very strong and in growth mode.

AMD's shares have been a major winner over the course of this bull market (and the last one), as it overtook Intel (INTC  ) to have the fastest chips. This is certainly surprising since AMD was spun off from Intel and has always been the Hunt's to Intel's Heinz. As a result, AMD's shares are up 18x over the last 5 years. And, shares are up by 170% since their March 2020 low, but they have corrected by 42% since their peak in November of last year.

Inside the Numbers

In Q1, AMD reported $1.13 in earnings per share which were well above expectations of $0.91 per share. Revenue came in at $5.9 billion which also topped expectations of $5 billion in revenue. This was a 117% in earnings, while revenue increased by 71%.

However, the revenue figure is inflated due to the company's acquisition of network equipment stock, Xilinx. Excluding Xilinx revenue, AMD sales were up 55%. The company attributed its beat to strong sales of server chips for data centers.

Additionally, each of its segments grew by a double-digit rate with its new Epyc server processor revenue doubling for the third straight quarter. Another source of strength for the stock was the company's strong guidance. For 2022, it expects $26.3 billion in revenue, a 60% gain, which was above its previous guidance of $21.5 billion. For Q2, it expects $6.5 billion in revenue, a 69% increase, and above expectations of $5.1 billion.

The decline in AMD's share price has led to valuations becoming increasingly attractive. The company has a forward P/E of 19.8 which is only slightly above the market average. However, the company has a much higher growth rate and profit margins than the average stock.