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The company said it expects revenue of about $6.5 billion,
plus or minus $200 million for the current quarter.
The company said it expects revenue of about $6.5 billion,
plus or minus $200 million for the current quarter.
Advanced Micro Devices Inc on
Tuesday forecast stronger-than-expected full year and
second-quarter revenue, with the data centre boom boosting
demand for its chips, and its shares rose in after-hours trade.
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“Each of our businesses grew by a significant double-digit
percentage year-over-year, led by EPYC server processor revenue
more than doubling for the third straight quarter,” said AMD CEO Lisa Su in its statement.
The strong outlook and earnings pushed up AMD shares by 3%
in after-hours trading.
Worldwide spending on cloud infrastructure services jumped
34% to $55.9 billion in the first quarter, according to data
from research firm Canalys, highlighting huge opportunities for
companies supplying chips and other hardware to the industry.
Still Summit Insights Group analyst Kinngai Chan called
AMD’s second quarter outlook “aggressive” and added there was
more downside risk in the PC and graphic card markets.
Graphic card prices have been falling in recent weeks as
demand for consumer products that use them have been softening
with the lockdown in China and inflation concerns.
On the earnings call with analysts, Su said AMD expected the
total PC market to fall by a high single-digit this year. “Our
focus remains on the premium, gaming and commercial portions of
the market where we see strong growth opportunities and expect
to continue gaining overall client revenue share,” she said.
The company said it expects revenue of about $6.5 billion,
plus or minus $200 million for the current quarter. Analysts on
average were expecting revenue of $6.38 billion, according to
Refinitiv data. For the full year, it forecast $26.3 billion, up
about 60%, and ahead of analysts’ estimates of $25.145 billion
according to Refinitiv IBES data.
AMD’s first-quarter revenue came in at $5.89 billion, above
analysts’ average estimate of $5.52 billion, according to
Refinitiv IBES data. On an adjusted basis, AMD earned $1.13 per
share, during the quarter, compared to Street’s estimates of 91
cents per share, according to Refinitiv data.
AMD finalised the acquisition of Xilinx Inc in mid-February.
The earnings and forecasts include its results.
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