Saturday, May 28, 2022
No Result
View All Result
Money Secrets Center
  • Home
  • Latest News
  • Privacy Policy
  • Whitelisting
Money Secrets Center
  • Home
  • Latest News
  • Privacy Policy
  • Whitelisting
No Result
View All Result
Plugin Install : Cart Icon need WooCommerce plugin to be installed.
Money Secrets Center
No Result
View All Result

AMD sales rise 54% on strong demand for chips for servers and game consoles

by
October 26, 2021
in Latest News
0 0
0
Home Latest News

Lisa Su, president and chief executive officer of Advanced Micro Devices Inc. (AMD), presents the AMD Ryzen 4000 series chip during an AMD press event at CES 2020 in Las Vegas, Nevada, U.S., on Monday, Jan. 6, 2020.

Bridget Bennett | Bloomberg | Getty Images

AMD reported third-quarter earnings after the bell on Tuesday, with earnings and revenue beating analyst expectations, and a strong forecast for the fourth quarter.

The stock was up 1% in extended trading.

Here’s how the chipmaker did against Refinitiv consensus estimates for the quarter ending Oct. 2:

EPS: $0.73, adjusted, versus $0.67 expected, up 16% year-over-year.Revenue: $4.31 billion, versus $4.12 billion expected, up 54% year-over-year

AMD said it expected $4.5 billion in sales in the fourth quarter, ahead of analyst expectations of about $4.25 billion in sales in the quarter. AMD is forecasting 39% annual growth in the fourth quarter.

AMD is one of the companies that has benefitted the most from the surge in electronics sales over the past 18 months as its central processors and graphics processors power PCs, servers and game consoles. Those sales are logged in AMD’s computing and graphics segment, which reported $2.4 billion in revenue, up 44% year-over-year.

The PC market has slowed from its torrid pace a year ago when people around the world still needed computers to work or learn from home, but AMD said its chips were selling at higher average prices as customers opt for more powerful processors.

AMD reports server chip and console chip sales in its Embedded, Enterprise, and Semi-custom segment. AMD reported $1.9 billion in sales in this important category, up 69% year-over-year driven by Epyc server chips, and higher “semi-custom” sales, which are the semiconductors it sells to game console makers.

AMD is in the process of taking market share in the server market behind its Epyc processors, as giants like Microsoft and Google buy its chips to run their cloud services. AMD CEO Lisa Su said in a statment that data center sales doubled year-over-year.

Meanwhile, game consoles, like Sony’s Playstation 5 and new Microsoft Xbox models, remain in high demand and hard to find as they sell out quickly. Likewise, AMD’s graphics and central processors are hard to find in stock in stores.

“Demand for Microsoft and Sony game consoles remains very strong,” AMD said.

AMD is a fabless chip company. It designs the technology inside its semiconductors and outsources manufacturing to foundry partners like TSMC and GlobalFoundries. In September, AMD CEO Su said she expects the chip shortage to become less severe in 2022.

AMD continues to keep its costs under control and increase its profitability. It said its gross margin was 48%, up from 44% in the same period last year. It forecast gross margins at 49.5% in the fourth quarter. AMD’s net income for the quarter was $893 million.

Last October, AMD announced its plans to buy Xilinix in a deal worth $35 billion that would give the company more firepower to compete with Intel in the data center chip market. AMD said the deal was still on track to close by the end of 2022.

AMD said it repurchased $750 million in shares during the quarter. AMD stock is up over 30% year to date.

ShareTweetShare

Next Post

Dow Jones Newswires: Chubb Q3 profit rises, helped by strong premium revenue growth

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Enter Your Information Below To Receive Latest News And Articles

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

  • Trending
  • Comments
  • Latest

China may be moving toward easy monetary policy, but it will have to tread delicately

October 22, 2021

Plug Power Leads Five Alt-Energy Plays Near Buy Points

October 31, 2021

FTC sues to block Nvidia’s $40 billion acquisition of Arm

December 2, 2021

The Essential Watchlist for Best Stocks Under $2

October 22, 2021

The Best Stocks Under $50 You Can Explore Right Now

0

The Essential Watchlist for Best Stocks Under $2

0

China Evergrande set to avert default as it reportedly pays off bond interest

0

‘The UK really is in trouble’: Doctors warn of a dire Covid crisis as officials reject restrictions

0

Market Extra: Why the Dow finally bounced — and what it will take to convince investors it’s for real

May 28, 2022

Market Extra: Some Sturm Ruger shareholders are seeking a ‘human rights impact assessment’ of the gun maker. Does your ETF hold the stock?

May 27, 2022

Personal Finance Daily: New Yorkers sued by debt collectors can now get legal advice from non-lawyers — here’s what that could mean for low-income consumers across the country and retailers follow Snap’s warning, but some buck the bad trend

May 27, 2022

Alphabet, Facebook, and 4 More Bargain Stocks to Buy Now

May 27, 2022
  • Home
  • Latest News
  • Privacy Policy
  • Whitelisting
All rights reserved by www.moneysecretscenter.com
No Result
View All Result
  • Home
  • Latest News
  • Privacy Policy
  • Whitelisting

All rights reserved by www.moneysecretscenter.com

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In