AMD bets on sturdy chip demand lift income forecast
Superior Micro Units Inc AMDraised its annual income forecast on Tuesday, betting on sturdy demand for its chips utilized in knowledge facilities and private computer systems as its chief govt mentioned she was assured the corporate might supply the chips regardless of a worldwide provide scarcity.
AMD bets on sturdy chip demand
The chip designer’s shares rose about 4% in prolonged buying and selling after it additionally reported better-than-expected outcomes for the primary quarter.
CEO Lisa Su mentioned AMD has “good visibility” into the ability to save further chips from its manufacturing companions.
Additionally, learn: Growing world chip demand pushes Taiwan’s export orders to file excessive
“Your complete semiconductor provides chain could be very, very tight,” she informed analysts on a convention name. “That being mentioned, we have been working very intently with we provide chain companions. We’ve got seen enhancements which have led to the improved full-year information.”
AMD has been prying away central processor chip market share from Intel Corp, whose manufacturing operations have fallen behind contract factories utilized by AMD, similar to Taiwan Semiconductor Manufacturing Co.
It has additionally benefited from a surge in demand for its graphics chips from players who’ve spent extra time enjoying and upgrading their gear in the course of the COVID-19 pandemic.
The corporate mentioned it now anticipated 2021 income to rise 50% from a yr earlier, implying a determination of $14.64 billion, in contrast with its earlier forecast of a 39% bounce.
Income within the first quarter soared 93% to $3.45 billion, beating a Refinitiv IBES estimate of $3.21 billion, thanks partially to increased common promoting costs for its chips.
“We really feel excellent about our progress, significantly in notebooks,” Su mentioned. “We’re seeing traction within the premium ultrathin, gaming and industrial” pocketbook markets.
Gross sales in AMD’s computing and graphics enterprise which incorporates graphics and central processor chips for private computer systems, rose 46% to $2.10 billion.
Its enterprise, embedded and semi-custom section, the unit that homes knowledge heart chips, posted a virtually four-fold bounce in gross sales to $1.35 billion.
Excluding objects, the corporate earned 52 cents per share, exceeding expectations of 44 cents per share.