Advanced Micro Gadgets 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 earnings development throughout all of our organizations and information center earnings more than doubled,” AMD AMD, -0.23% Chief Executive Lisa Su stated in a declaration. “Our increased full-year guidance highlights the strong growth we anticipate throughout our company based on increasing adoption of our high-performance computing products and expanding consumer relationships.”
Sales from business embedded and semi-custom chips– the system that consists of data-center and gaming-console revenue– nearly quadrupled to $1.35 billion, compared to $348 million a year earlier. Analysts surveyed by FactSet expected $1.3 billion. Su’s remarks about data-center earnings were valuable as AMD does not break out data-center sales from gaming sales.
Recently, Intel Corp. INTC, -1.34% said the data-center market remained in a “digestion stage,” adding to a 20% drop in sales for information centers, yet analysts indicated increased competitors from AMD and ARM Holdings PLC
. AMD reported first-quarter earnings of $555 million, or 45 cents a share, compared with $162 million, or 14 cents a share, in the year-ago duration. After changing for stock-based settlement and other aspects, the Santa Clara, Calif.-based business reported earnings of 52 cents a share, compared to 18 cents a share in the year-ago duration. Earnings increased to $3.45 billion from $1.79 billion in the year-ago quarter.
Analysts surveyed by FactSet had anticipated adjusted earnings of 44 cents a share on income of $3.18 billion, and AMD projected in between $3.1 billion and $3.3 billion.
Executives likewise increased AMD’s guidance for the complete year, to a sales boost of about 50% from previous guidance of a roughly 37% boost. AMD reported revenue of $9.67 billion in 2015, recommending sales of about $14.65 billion this year; experts had actually been anticipating income 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 scarcity of microchips to sate demand from global markets, and the companies that make the silicon wafers chip designs use, work to clear waiting lists that cover several months.
Read: The semiconductor lack is here to remain, but it will affect chip companies differently
More of how the chip sector is dealing with supply lacks will exposed today with Qualcomm Inc. QCOM, -0.68% incomes on Wednesday and KLA Corp. KLAC, -1.58% revenues on Thursday.
AMD expects second-quarter income of $3.5 billion to $3.7 billion, while experts had actually been projecting $3.23 billion, according to FactSet.