Advanced Micro Devices (AMD) torched analyst forecasts again for the second quarter, in large part fueled by robust demand for chips for gaming consoles, PCs and servers.
“The demand for computing is just exploding everywhere,” AMD CEO Dr. Lisa Su said on Yahoo Finance Live. “I think whether it’s in PCs where you are working from home, schooling from home or returning to office, people want better devices and particularly in the data center, where there is just an incredible need for more capability given all the collaboration that we are doing.”
Those favorable industry dynamics and AMD’s leadership position in it drove another eye-popping quarter for the chipmaker.
AMD’s first quarter non-GAAP net sales surged 99% year-over-year (faster than the first quarter’s rate of 93%). Operating profits spiked 294% from a year ago (quicker than first quarter’s 223% growth). Sales rose in both of AMD’s business segments, led by a 183% surge in the enterprise, embedded and semi-custom operations.
Here is how AMD performed compared to Wall Street estimates for the first quarter:
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Net Sales: $3.45 billion vs. $3.61 billion
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Gross Margin: 48% vs. 47%
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Adjusted Diluted EPS: $0.63 vs. $0.54
AMD lifted its full-year sales growth outlook to 60% from 50% previously. Gross profit margins are pegged at 48% compared to a prior outlook for 47%.
Shares of AMD have risen 55% over the past year.
Most on Wall Street expect the company’s momentum to continue through 2022.
“Overall, we remain impressed by AMD’s strong product execution, expect share gains to continue through 2H21 (at least), and applaud the company reinvesting in opex to feed future growth,” said Deutsche Bank analyst Ross Seymore.
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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