HomeBusinessAMD charts stronger 2022 as data-center revenue booms; shares surge

AMD charts stronger 2022 as data-center revenue booms; shares surge

:Advanced Micro Devices Inc forecast 2022 revenue above expectations on Tuesday, driving its shares up as a lot as 11per cent in after-hours buying and selling, as stellar demand for its chips utilized in information middle servers is anticipated to proceed to drive progress.

“Relative to the growth from the different businesses, the growth will be led by server,” Chief Executive Officer Lisa Su informed analysts on a convention name, including that the server enterprise could be “very strong” this yr.

AMD’s sturdy forecast additionally boosted shares of chipmakers Nvidia Corp and Qualcomm Inc.

The chip designer posted file fourth-quarter revenue, surpassing estimates, as it offered extra chips priced on the greater finish.

AMD has dived deeper into the info middle market to capitalize on booming cloud adoption, whereas its agile mannequin of outsourced manufacturing has helped the corporate pry away market share from rival Intel Corp.

“AMD is clearly gaining market share in both the PC client and the server/datacenter end-markets against Intel,” stated Kinngai Chan, managing director and senior analysis analyst for semiconductors at Summit Insights Group. He added that AMD’s market share in each these markets remains to be comparatively low.

While shares of many chip corporations rose in after-hours buying and selling, Intel fell barely.

AMD has made quite a lot of new launches with vital efficiency good points, together with updates to its graphics processor lineup used for cloud and high-quality gaming, making a problem for Intel.

Signaling that supply-chain challenges could also be easing, Su stated the stock was “matched to demand” and added that the corporate had made vital investments to make sure ongoing capability enlargement.

For the complete yr, AMD forecast revenue of about $21.5 billion, in contrast with analysts’ common estimate of $19.27 billion, based on IBES information from Refinitiv.

The California-based firm reported adjusted fourth-quarter revenue of $4.83 billion, in contrast with estimates of $4.53 billion.

Net earnings fell to $974 million from $1.78 billion final yr. Excluding gadgets, AMD earned 92 cents per share, surpassing estimates of 76 cents.

(Reporting by Chavi Mehta and Yuvraj Malik in Bengaluru and Jane Lanhee Lee in Oakland, Calif.;Editing by Anil D’Silva and Matthew Lewis)

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