Advanced Micro Devices Inc (AMD)

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AMD forecasts strong revenue this year on data center boom
By: Reuters | May 3, 2022

• Advanced Micro Devices Inc forecast second-quarter revenue above market expectations on Tuesday, betting on steady demand for its chips used in data centers and gaming consoles.

Advanced Micro Devices Inc on Tuesday forecast stronger than expected full year and second-quarter revenue as the data center boom fuels demand for its chips.

“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 chief executive 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.

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.

AMD finalized the acquisition of Xilinx Inc in mid-February. The earnings and forecasts include its results.

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