The company expects revenue of approximately $6.5 billion plus or minus $200 million for the current quarter.
The company expects revenue of approximately $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 earnings as the data center boom spurred demand for its chips and its shares rose in after-hours trading.
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“Each of our businesses grew at a significant double-digit percentage year-over-year, led by EPYC server processor revenue, which more than doubled for the third straight quarter,” AMD CEO Lisa Su said in her statement.
The bright outlook and earnings sent AMD shares up 3% in after-hours trading.
According to data from research firm Canalys, global spending on cloud infrastructure services rose 34% to $55.9 billion in the first quarter, highlighting tremendous opportunities for companies that supply chips and other hardware to the industry.
Summit Insights Group analyst Kinngai Chan called AMD’s second-quarter outlook “aggressive,” adding that there are more downside risks in the PC and graphics card markets.
Graphics card prices have fallen in recent weeks as demand for consumer products that use them has eased amid China’s lockdown and inflation worries.
On the analyst conference call, Su said AMD expects the overall PC market to fall by a high single-digit amount 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 to capture a share of our customers’ overall revenue,” she said.
The company expects revenue of approximately $6.5 billion plus or minus $200 million for the current quarter. According to data from Refinitiv, analysts on average expected sales of $6.38 billion. Full-year earnings were forecast at $26.3 billion, up about 60% and above analyst estimates of $25.145 billion, according to data from Refinitiv IBES.
AMD’s revenue for the first quarter was $5.89 billion, according to Refinitiv IBES data, beating analysts’ average estimate of $5.52 billion. On an adjusted basis, AMD earned $1.13 per share during the quarter, compared to Street’s estimate of 91 cents per share, according to data from Refinitiv.
AMD completed the acquisition of Xilinx Inc in mid-February. The results and forecasts include the results.
