(Reuters) - Advanced Micro Devices Inc AMD.O reported an 18.3 percent jump in quarterly revenue, largely in line with analysts' estimates, but the chipmaker's second-quarter gross margins forecast raised some concerns.

A man looks at motherboards displayed at the AMD booth during the Computex 2011 computer fair at the TWTC Nangang exhibition hall in Taipei May 31, 2011. REUTERS/Pichi Chuang/File Photo

The company’s shares, which had gained more than 20 percent this year, were down 10.2 percent at $12.23 in after-market trading on Monday.

AMD said it expected adjusted gross margins to be about 33 percent in the current quarter, compared with 34 percent in the first quarter.

“Semiconductor companies, and, particularly, one that’s trying to turn around and become profitable, trades on gross margin and I think there’s concern,” Stifel analyst Kevin Cassidy said.

“I think that’s the hang up - that these new products should be ramping production and they’re not as profitable as the Street was expecting.”

AMD launched a few of its Ryzen range of desktop processors in the first quarter and plans to unveil its Naples chips targeting the server market in the second quarter.

The Ryzen chips helped boost the company’s revenue in the first quarter ended April 1.

“All of the feedback that we’ve gotten so far from both our customers and from end-users has been very strong,” Chief Executive Officer Lisa Su said during an earnings call, responding to a question on the launch.

However, total revenue was weighed down by its business that mainly supplies graphics cards used in gaming consoles such as the Xbox One and the PlayStation 4.

Revenue in the business rose 5 percent to $391 million, but came in below analysts’ average estimate of $442.1 million, according to financial data and analytics firm FactSet.

AMD also forecast low double-digit percentage revenue growth for the full year.

Revenue rose to $984 million in the first quarter, from $832 million a year earlier.

AMD’s net loss narrowed to $73 million, or 8 cents per share, from $109 million, or 14 cents per share.

Excluding items, the company lost 4 cents per share, in line with analysts’ average estimate.

AMD's shares, which joined the broader S&P 500 index .SPX in March, had risen more than four-fold last year.