AMD reported first-quarter earnings after the bell on Tuesday, beating analyst estimates for earnings and income, sending the top off as a lot as 8% in prolonged buying and selling.
This is how the chipmaker did versus Refinitiv consensus estimates within the quarter ending March:
- EPS: $1.13, adjusted, versus $0.91 anticipated, up 117% year-over-year
- Income: $5.89 billion, versus $5.52 billion anticipated, up 71% year-over-year
AMD stated it anticipated $6.5 billion in gross sales within the present quarter, forward of analyst expectations of $6.38 billion.
AMD’s outcomes on Tuesday counsel that the chipmaker continues to be rising fiercely, with 71% gross sales progress within the first quarter, and each one in every of its particular person strains of enterprise rising by double digits through the quarter.
Lisa Su, CEO, AMD
Scott Mlyn | CNBC
One spotlight for AMD is its high-end server chip enterprise, which primarily competes with Intel. Some knowledge factors present that AMD has taken market share from its rival whereas it tries to get its manufacturing prowess again.
Some analysts counsel that PC gross sales might shrink this yr after two years the place shipments exploded as folks wanted laptops to earn a living from home or go to high school remotely. Some buyers consider that the pandemic PC boom is over, however AMD, which provides the processor on the coronary heart of many laptops and desktops, is not feeling the decline.
“Though the PC market is experiencing some softness coming off a number of quarters of near-record unit shipments, our focus stays on the premium, gaming and industrial parts of the market the place we see sturdy progress alternatives and count on to proceed gaining general consumer income share,” AMD CEO Lisa Su stated, including that AMD believes that it has gained market share in PC chips for eight straight quarters.
PC gross sales are reported in AMD’s computing and graphics phase, which rose 33% on an annual foundation and was 8% larger than the December quarter. AMD stated that the rise was pushed each by central processors and graphic processor gross sales, and that the typical gross sales worth for Ryzen processors rose through the quarter.
Cloud server gross sales are reported in AMD’s Embedded, Enterprise, and Semi-custom phase, which elevated 88% to $2.5 billion. AMD stated the rise was pushed by larger server processor gross sales in addition to semi-custom gross sales, that are the chips that go into the center of sport consoles just like the PlayStation 5.
Su stated that AMD’s semi-custom enterprise grew by “double-digits” on a year-over-year foundation as a result of shopper demand for the Ps 5, Xbox One, and Valve’s Steam Deck.
“Gross sales for this sport console era proceed to outpace all prior generations, and we count on 2022 to be a report yr for our semi-custom enterprise,” Su stated.
AMD inventory has had a tough 2022, dropping over 39% to date, after a blowout 2021 when its gross sales elevated 68% and gross margin grew to 48%. Traders are shying away from semiconductor shares within the face of elevated inflation danger.
Final week, Intel gave a disappointing forecast for the June quarter, citing weak PC demand and macroeconomic challenges.
AMD stated it accomplished the acquisition of Xilinx in February. The deal was originally announced in 2020 with a $35 billion price ticket. AMD stated that its outcomes included six weeks of income from the deal, and that with out Xilinx gross sales, income would have solely elevated 55% year-over-year to $5.3 billion.
AMD stated it repurchased $1.9 billion of its inventory through the quarter.
