AMD today announced first quarter revenue of $1.65 billion, up 40 percent year-over-year and 23 percent quarter-over-quarter, driven primarily by higher revenue in the company's chips for PCs, GPUs and datacenters.

The company reported an operating income for the same period of $120 million, net income of $81 million, and the diluted earnings per share of $0.08.

"The first quarter was an outstanding start to 2018 with 40 percent year-over-year revenue growth," said Dr. Lisa Su, AMD president and CEO. "PC, gaming and datacenter adoption of our new, high-performance products continues to accelerate. We are excited about our long-term roadmaps and focused on delivering sustained revenue growth and profitability."

AMD's Computing and Graphics segment revenue was $1.12 billion, up 95 percent year-over-year and 23 percent quarter-over-quarter, primarily driven by strong sales of Radeon and Ryzen products.

Client processor average selling price (ASP) increased year-over-year and quarter-over-quarter due to a greater percentage of revenue from AMD's Ryzen products.

GPU ASP increased year-over-year and quarter-over-quarter driven by a greater percentage of revenue from new Radeon products.

Operating income was $138 million, compared to an operating loss of $21 million a year ago and operating income of $33 million in the prior quarter. Operating income improvement was driven by higher revenue.

AMD's revenue from Enterprise, Embedded and Semi-Custom (EESC) segment was $532 million, down 12 percent year-over-year due to lower semi-custom revenue, partially offset by higher server and embedded revenue.

During the first quarter, AMD introduced the first AMD Ryzen desktop APUs, combining the Radeon "Vega" graphics architecture with "Zen" CPU cores on a single chip.

AMD also launched its 2nd Generation Ryzen desktop CPUs just over one year after bringing the first Ryzen processors to market.

For the second quarter of 2018, AMD expects revenue to be approximately $1.725 billion, plus or minus $50 million, an increase of 50 percent year-over-year, and non-GAAP gross margin of approximately 37 percent.