AMD said fourth-quarter earnings after the bell on Ist Feb, beating analyst assessments for earnings and sales, and delivered a very powerful sales forecast for 2022. AMD stock grew more than 11% at one point during extended trading.
Here’s how the chipmaker did versus per Refinitiv consensus estimates in the quarter ending Dec. 25:
AMD stated it expected $21.5 billion in sales in 2022, ahead of analyst expectations of $19.26 billion. That would be a 31% growth over 2021’s sales. In addition, AMD said it expected $5 billion in sales in the first quarter, driven by server and PC processor sales.
In 2021, AMD’s sales rose 68%, and the company’s gross margin grew to 48%, up over 3 percentage points from last year.
AMD has been riding a surge in PC and electronics sales over the past two years and has lately released new chips with substantial performance gains that let the processor maker question Intel, the biggest supplier of PC chips.
Those sales are registered in AMD’s computing and graphics segment, which reported a 32% growth to $2.6 billion in revenue. AMD stated that the sales were driven by Ryzen processors and Radeon graphics processor sales and recorded the average selling price for both product lines was growing on an annual basis.
AMD also sells chips for cloud servers and game consoles, reported in the Embedded, Enterprise, and Semi-custom segments. AMD stated that segment shot up 75% to $2.2 billion, powered by server chip and game console sales.
“We anticipate [semi-custom] revenue to increase this year driven by continued strong demand for the latest Microsoft and Sony consoles,” AMD Lisa Su conveyed on a call with analysts, saying the current console upgrade cycle is outpacing “all prior generations.”
AMD announced its plans to purchase Xilinx in a deal worth $35 billion, giving the company more firepower to contend with Intel in the data center chip market. On Tuesday, the company stated that it had obtained approval from Chinese regulatory bodies, but the acquisition has not yet closed.
“The only remaining regulatory review needed is FTC approval of our HSR re-filing, and we anticipate completing the transaction in the first quarter of 2022,” Su said.
AMD stated that it has the production capacity it needs to grow in 2022, an acknowledgment of the current worldwide chip shortage roiling competitors. AMD said it spent $1 billion in 2021 to secure long-term production capacity. Su said last September that she anticipates the chip shortage to become less severe this year. As a result, AMD said it repurchased $1.8 billion of its shares in 2021. AMD stock was down 22% year-to-date when markets closed on Tuesday.
Read More
Business Talk is a digital business magazine that caters to CEOs, Entrepreneurs, VC, and Corporates. While working with entrepreneurs and business executives, we focus not only on their achievements. Our mission is to shed light on business entities, including their innovations, technological benchmarks, USPs, and milestones/accolades.
How will technological automation shape the future? For a long time, this has been a…
The number of factors that go into creating and keeping up a successful lead generation…
Ever since the introduction of Generative AI, a new integration is emerging every now and…
While in-person meetings are indisputable, video conferencing is a good substitute, particularly for completely remote…
While mankind is moving towards digitalized solutions, the relevance of printed material has not diminished.…
Since the Pandemic, the way individuals interact with content and manage data has changed significantly.…