Advanced Micro Devices Inc. expects strong sales of data centers and games to stay strong until 2021 after the chipmaker achieved $ 3 billion in quarterly revenue for the first time late Tuesday, and its results and prospects rose above Wall Street’s estimates.
AMD AMD,
had a fourth-quarter net income of $ 1.78 billion, or $ 1.45 per share, compared to $ 170 million, or 15 cents per share, in the previous year.
After adjusting for the release of a $ 1.3 billion tax valuation grant due to strong results and other factors, the disc company showed earnings of 52 cents per share, compared to 32 cents per share in the previous year. Revenue rose to $ 3.24 billion from $ 2.13 billion in the previous quarter.
Analysts polled by FactSet predicted adjusted earnings of 47 cents per share of $ 3.03 billion.
AMD showed $ 1.96 billion in computer and graphics chips sales in the fourth quarter, up 18% from $ 1.66 billion last year, compared to analysts’ expectations of $ 1.8 billion. Sales of built-in and semi-custom chips for businesses – the unit that includes data center and game console revenue – were $ 1.28 billion, up 176% from $ 465 million a year ago, compared to the average analysts’ forecast of $ 1.24 billion.
AMD President and CEO Lisa Su said at the conference that gaming products had received a major boost from the release of Microsoft Corp. last term’s MSFT,
new range of Xbox consoles and the SNE from Sony Corp.
PlayStation 5.
‘Our semi-use [system on a chip] sales are rising faster than the last console cycle, and we expect sales to be better than normal seasonality in the first half of this year, based on current strong demand, ”said Su.
On the server side, Su said sales and cloud sales remained strong.
“Google GOOG,
GOOGL,
Microsoft, Tencent 700,
and others continue to expand their use of Epyc processors to power larger parts of their critical internal infrastructure, and the number of AMD-powered cloud cases is expanding, ”Su said.
The company expects revenue to be between $ 3.1 billion and $ 3.3 billion in the first quarter, and revenue to increase by approximately 37% in 2021, or to approximately $ 13.37 billion.
Analysts expect revenue of $ 2.72 billion in the first quarter, and revenue of 2021 $ 12.26 billion for 2021.
Su also said that to date, AMD has achieved a number of key regulatory milestones in acquiring Xilinx Inc. XLNX,
and that the transaction will remain underway at the end of 2021.
AMD shares, which rose as much as 3% after hours, last fell less than 1% in long-term trading, after rising 0.6% in the ordinary session to $ 94.71.
Over the past twelve months, AMD shares have risen 88%. For comparison, the PHLX Semiconductor Index SOX,
rose by 58% during that time, the S&P 500 index SPX,
17%, and the technically heavy Nasdaq Composite Index COMP,
increased by 46%.