AMD CEO feeling ‘very, excellent’ about data-center market as gross sales hit a report

Superior Micro Gadgets Inc. turned in one more beat-and-raise quarter Tuesday due to data-center gross sales that the chip maker’s chief govt referred to as “very, excellent.”

AMD raised steerage for the total 12 months but once more, because it has in each quarterly earnings report thus far this 12 months, and now initiatives gross sales to develop about 65% year-over-year in contrast with a forecast of 60% progress within the earlier steerage. AMD reported income of $9.76 billion final 12 months, so that implies gross sales of about $16.1 billion this 12 months, whereas analysts have been forecasting income of $15.52 billion, in line with FactSet.

AMD additionally expects fourth-quarter income of $4.4 billion to $4.6 billion, whereas analysts had been projecting $4.25 billion, in line with FactSet.

“We’re very happy with the momentum now we have in-built our data-center enterprise, as server CPU and GPU income grew to a mid-20s p.c of total income within the quarter,” AMD Chief Government Lisa Su stated on a convention name Tuesday.

AMD reported third-quarter internet earnings of $923 million, or 75 cents a share, in contrast with $710 million, or 58 cents a share, within the year-ago interval. After adjusting for stock-based compensation and different elements, the Santa Clara, Calif.-based firm reported earnings of 73 cents a share, in contrast with 41 cents a share within the year-ago interval.

Income rose to $4.31 billion from $2.8 billion within the year-ago quarter. Analysts surveyed by FactSet had forecast adjusted earnings of 66 cents a share on income of $4.11 billion, after AMD projected between $4 billion to $4.2 billion.

Gross sales from enterprise, embedded and semi-custom chips — the unit that features data-center and gaming-console income — rose 69% to $1.91 billion, in contrast with $1.13 billion a 12 months in the past. Analysts had forecast $1.78 billion. Rival Intel Corp.’s data-center gross sales rose 10% as compared.

“We’re feeling very, excellent in regards to the server enterprise or the data-center market,” Su stated on the decision. “I feel from a market standpoint, you already know, we’ve seen a powerful market 12 months in 2021, in each cloud and enterprise, and we see that persevering with into 2022.

“And we see sturdy demand throughout the board, however sequentially what we’re guiding to is, you already know, stronger server demand in addition to gaming, and gaming contains the semi-custom recreation consoles, in addition to our graphics enterprise,” Su added.

In its computing and graphics section, AMD reported second-quarter gross sales of $2.4 billion, up from $1.67 billion final 12 months, in contrast with analyst expectations of $2.33 billion.

Shares, which had been up barely after hours, have been final down rather less than 1%. The inventory rose 0.5% within the common session to a recent all-time excessive of $122.93, its fourth report shut in a row.

Su additionally stated AMD’s acquisition of Xilinx Inc. was making “good progress” via the regulatory course of, and he or she expects it to shut by the top of the 12 months.

Over the previous 12 months, AMD shares have gained 50%. Compared, the PHLX Semiconductor Index  has gained 47%, the S&P 500 index  has risen 35%, and the tech-heavy Nasdaq Composite Index  is up 34%.

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