Investors cheered chipmaker Advanced Micro Devices after its quarterly loss narrowed and outlook topped analysts’ estimates.

The California-based company said its loss nearly halved to $51m or 6 cents a share in the fourth quarter, from a loss of $102m or 13 cents a share in the year ago period. Analysts had forecast a loss of 4 cents a share. Adjusted for one-time items, a loss of a penny was in line with expectations.

Revenue climbed nearly 16 per cent to $1.1bn, above estimates, driven by higher graphics processing unit (GPU) sales. The average sell price of GPU’s climbed, driven by higher prices for desktop and professional graphics, the company said.

For the current quarter, the company said it expects revenues to slide 11 per cent sequentially, plus of minus three per cent, indicating a range of $951.2m to $1.02bn, compared with Bloomberg estimates of $962m.

AMD’s shares jumped 295 per cent last year buoyed by investor hopes of a turnaround under chief executive Lisa Su and as a wave of deal activity helped lift sentiment on semiconductors. “We met our strategic objectives in 2016, successfully executing our product roadmaps, regaining share in key markets, strengthening our financial foundation, and delivering annual revenue growth,” Dr Su, said.

AMD shares, which have slid more than 8 per cent so far this year, climbed more than 4 per cent in extended trading to $10.80.

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