Advanced Micro Devices Inc. expects data center and gaming sales to remain strong sales until 2021 after the chip maker exceeded $ 3 billion in quarterly revenue for the first time by the end of Tuesday and its results and outlook exceeded estimates. Wall Street.
AMD AMD,
reported fourth-quarter net income of $ 1.778 billion, or $ 1.45 per share, compared to $ 170 million, or 15 cents per share, in the prior year period.
After adjusting for the release of a $ 1.3 billion tax valuation subsidy due to strong results and other factors, the chip company reported gains of 52 cents per share, compared to 32 cents per share for the period of the previous year. Revenue rose to $ 3.242 billion, up from $ 2.133 billion in the previous quarter.
Analysts surveyed by FactSet had forecast adjusted earnings of 47 cents per share on revenue of $ 3.03 million.
AMD posted fourth-quarter sales of $ 1.96 billion for computer and graphics chips, up 18 percent from $ 1.666 billion last year, compared to analysts’ expectations of $ 1.8 billion. Sales of enterprise and semi-custom chips (the unit that includes data center and game console revenue) were $ 1.282 billion, up 176% from $ 465 million a year ago. compared to analysts ’average forecast of $ 1.242 billion.
AMD President and CEO Lisa Su said at the conference call that gaming products got a big boost with Microsoft Corp.’s MSFT release last quarter.
Sony Corp.’s new line of Xbox and SNE consoles,
PlayStation 5.
“Our semi-personalized [system on a chip] sales are up faster than the last console cycle and we expect sales to be better than typical seasonality during the first half of this year, according to current strong demand, ”Su said in the call.
As for the server, Su said cloud and business sales remained 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 with AMD technology is expanding, ”Su said.
The company expects revenue for the first quarter to be between $ 3.1 billion and $ 3.3 billion, and revenue for 2021 to increase by about 37%, to $ 13.377 billion.
Analysts expect first-quarter revenue of $ 2.72 million and revenue of $ 20.221 billion in 2021.
Su also said AMD has “passed several important regulatory milestones so far” regarding its acquisition of Xilinx Inc. XLNX,
and that the agreement is well on track to close at the end of 2021.
Shares of AMD, which had risen to 3% after hours, fell below 1% in extended trading, after a 0.6% increase in the regular session to close at $ 94.71.
Over the past twelve months, AMD shares have gained 88%. In comparison, the PHLX SOX Semiconductor Index,
increased by 58% during this time, the S&P 500 SPX index,
gained 17%, and the composite index Nasdaq COMP
increased by 46%.