AMD Shares Rise As Profits Overtake Street View, Data Center Sales Double

<div id=”js-article__body” itemprop=”articleBody” data-sbid=”WP-MKTW-0000247307″>

Advanced Micro Devices Inc. rose in the extended session Tuesday after the chipmaker said data center revenue doubled and results beat Wall Street estimates. AMD AMD shares of -0.23% rose 4% after hours, following a 0.2% drop in the regular session to close at $ 85.21.

“We had exceptional year-over-year revenue growth across all of our businesses and data center revenue doubled,” said Lisa Su, AMD president and CEO, in a statement. “Our further guidance for the full year highlights the strong growth we expect in our business based on the increasing adoption of our high-performance computing products and expanding customer relationships.” Sales of embedded and semi-custom enterprise chips, the unit that includes data center and game console revenue, nearly quadrupled to $ 1.35 billion, compared to $ 348 million a year ago. Analysts surveyed by FactSet expected $ 1.3 billion. Su’s feedback on data center revenue was helpful as AMD does not separate data center sales from game sales. Last week, Intel Corp. INTC, -1.34% said the data center market was in a “digestion phase” as a factor in its 20% drop in sales to data centers. The company reported first-quarter net income of $ 555 million, or 45 cents a share, compared to $ 162 million, or 14 cents a share, in the same period last year. After adjusting for share-based compensation and other factors, the Santa Clara, California-based company reported earnings of 52 cents a share, compared with 18 cents a share in the same period last year. Revenue increased to $ 3.45 billion from $ 1.79 billion in the prior year quarter. Analysts surveyed by FactSet had forecast adjusted earnings of 44 cents a share on revenue of $ 3.18 billion in AMD‘s forecast of between $ 3.1 billion and $ 3.3 billion. AMD reported first-quarter sales of $ 2.1 billion for computer and graphics chips, up 46% from $ 1.44 billion last year, compared to analyst expectations of $ 1.89 billion. Read: Semiconductor shortages are here to stay, but it will affect chip companies differently. AMD‘s strong earnings come amid an ongoing shortage of microchips to meet demand from global industries, and companies that manufacture Silicon wafer chip designs work to eliminate the wait. lists spanning several months. AMD expects second-quarter revenue of $ 3.5 billion to $ 3.7 billion, while analysts are expecting $ 3.23 billion. Over the past 12 months, AMD shares have gained 51%. By comparison, the PHLX Semiconductor Index SOX, -0.76%, gained 87%, the S&P 500 SPX Index, -0.02%, gained 54%, and the high-tech Nasdaq Composite Index COMP was up 61%. More on how the chip sector is dealing with supply shortages will be revealed this week with Qualcomm Inc. QCOM, gains of -0.68% on Wednesday and KLA Corp. KLAC, gains of -1.58% on Thursday.