Advanced Micro Devices Inc. shares rose in the extended session Tuesday after the chip maker said data-center revenue more than doubled to fuel record quarterly sales, and increased its revenue forecast for the year.
“We had outstanding year-over-year revenue growth across all of our businesses and data center revenue more than doubled,” AMD AMD,
Sales from enterprise embedded and semi-custom chips — the unit that includes data-center and gaming-console revenue — nearly quadrupled to $1.35 billion, compared with $348 million a year ago. Analysts surveyed by FactSet expected $1.3 billion. Su’s comments about data-center revenue were helpful as AMD does not break out data-center sales from gaming sales.
Last week, Intel Corp. INTC,
AMD reported first-quarter net income of $555 million, or 45 cents a share, compared with $162 million, or 14 cents a share, in the year-ago period. After adjusting for stock-based compensation and other factors, the Santa Clara, Calif.-based company reported earnings of 52 cents a share, compared with 18 cents a share in the year-ago period. Revenue rose to $3.45 billion from $1.79 billion in the year-ago quarter.
Analysts surveyed by FactSet had forecast adjusted earnings of 44 cents a share on revenue of $3.18 billion, and AMD projected between $3.1 billion and $3.3 billion.
Executives also increased AMD’s guidance for the full year, to a sales increase of about 50% from previous guidance of a roughly 37% increase. AMD reported revenue of $9.67 billion last year, suggesting sales of about $14.65 billion this year; analysts had been forecasting revenue of $13.46 billion, according to FactSet.
AMD shares gained more than 3% in after-hours trading, following a 0.2% decline in the regular session to close at $85.21.
AMD reported first-quarter sales of $2.1 billion for computing and graphics chips, up 46% from $1.44 billion last year, compared with analyst expectations of $1.89 billion.
AMD’s strong earnings come amid a continuing shortage of microchips to sate demand from global industries, and the companies that make the silicon wafers chip designs use, work to clear waiting lists that span several months.
Read: The semiconductor shortage is here to stay, but it will affect chip companies differently
More of how the chip sector is dealing with supply shortages will revealed this week with Qualcomm Inc. QCOM,
AMD expects second-quarter revenue of $3.5 billion to $3.7 billion , while analysts had been projecting $3.23 billion, according to FactSet.
Over the past 12 months, AMD shares have gained 51%. In comparison, the PHLX Semiconductor Index SOX,
