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Advanced Micro Devices Inc. expects strong data center and gaming sales to maintain strong sales in 2021 after the chipmaker surpassed $ 3 billion in quarterly revenue for the first time on Tuesday night and that its results and outlook have exceeded Wall Street estimates.
AMD AMD,
reported fourth-quarter net income of $ 1.78 billion, or $ 1.45 per share, compared to $ 170 million, or 15 cents per share, for the same period a year earlier.
After adjusting for the release of a $ 1.3 billion tax valuation allowance due to strong results and other factors, the chip company reported earnings of 52 cents per share, compared with 32 cents per share. action a year ago. Revenue rose to $ 3.24 billion from $ 2.13 billion in the quarter last year.
Analysts polled by FactSet had forecast adjusted earnings of 47 cents per share on revenue of $ 3.03 billion.
AMD reported fourth quarter revenue of computer and graphics chips of $ 1.96 billion, up 18 percent from $ 1.66 billion last year, from $ 1.8 billion. dollars. Sales of enterprise integrated and semi-custom chips – the unit that includes revenue from data centers and game consoles – were $ 1.28 billion, up 176% from 465 million dollars a year ago, compared to analysts’ average forecast of $ 1.24 billion.
AMD CEO Lisa Su said on the conference call that gaming products have received a big boost since Microsoft Corp’s MSFT release last quarter.
new line of Xbox and SNE consoles from Sony Corp.,
PlayStation 5.
“Our semi-personalized [system on a chip] sales are growing faster than the last console cycle, and we expect sales to be better than typical seasonality in the first half of this year, based on the current strong demand, ”Su said on the call.
On the server side, Su said cloud and enterprise sales remain strong.
“Google GOOG,
GOOGL,
Microsoft, Tencent 700,
and others continue to expand their use of Epyc processors to power larger portions of their critical internal infrastructure and the number of cloud instances powered by AMD is increasing, ”Su said.
The company expects first-quarter revenue to be between $ 3.1 billion and $ 3.3 billion, and 2021 revenue to grow by about 37 percent, or about $ 13.37 billion. dollars.
Analysts predict first-quarter revenue of $ 2.72 billion and 2021 revenue of $ 12.26 billion.
Su also said that AMD has “reached several important regulatory milestones to date” regarding its acquisition of Xilinx Inc. XLNX,
and that the deal remains on track to conclude by the end of 2021.
AMD shares, which had risen 3% after-hours, were last down less than 1% in extended trading, after rising 0.6% in the regular session to close at 94.71 $.
Over the past 12 months, AMD shares have gained 88%. In comparison, the PHLX Semiconductor Index SOX,
rose 58% during this period, the S&P 500 SPX index,
gained 17%, and the Nasdaq Composite Index COMP,
increased by 46%.
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