{"id":8753,"date":"2022-02-02T00:23:06","date_gmt":"2022-02-02T00:23:06","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/02\/02\/amds-stock-jumps-10-on-another-blowout-quarter-and-bullish-forecast\/"},"modified":"2022-02-02T00:23:06","modified_gmt":"2022-02-02T00:23:06","slug":"amds-stock-jumps-10-on-another-blowout-quarter-and-bullish-forecast","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/02\/02\/amds-stock-jumps-10-on-another-blowout-quarter-and-bullish-forecast\/","title":{"rendered":"AMD’s stock jumps 10% on another blowout quarter and bullish forecast"},"content":{"rendered":"

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Advanced Micro Devices Inc.<\/a> blew past analysts\u2019 estimates for earnings and revenue today thanks to strong sales in both of its main business segments.<\/p>\n

The strong quarterly results were followed by a bullish forecast for the next three-month period and full year, sending AMD\u2019s stock up more than 10% in extended trading.<\/p>\n

AMD reported<\/a> operating income in the fourth quarter of $1.2 billion, up an astonishing 112% from a year ago thanks to what officials said was higher revenue and gross margin expansion. Earnings before certain costs such as stock compensation came to 92 cents per share, while revenue rose 49% from a year ago, to $4.83 billion.<\/p>\n

That was better than expected, with Wall Street looking for earnings of just 76 cents per share on revenue of $4.53 billion.<\/p>\n

AMD said its net income for the quarter fell to $974 million, however, because of a $1.3 billion income tax benefit associated with a valuation allowance release that occurred in the last quarter of its previous financial year.<\/p>\n

For its full fiscal 2021 year, AMD reported revenue jumped 68% from 2020, to $16.4 billion. Operating income for 2021 leaped 166%, to $3.65 billion, while net income rose 27%, to $3.16 billion.<\/p>\n

AMD President and Chief Executive Lisa Su (pictured) said it was an \u201coutstanding year\u201d for the company, with record revenue and profitability.<\/p>\n

\u201cEach of our businesses performed extremely well, with data center revenue doubling year-over-year driven by growing adoption of AMD EPYC processors across cloud and enterprise customers,\u201d Su said. \u201cWe expect another year of significant growth in 2022 as we ramp our current portfolio and launch our next generation of PC, gaming and data center products.\u201d<\/p>\n

Indeed, AMD promptly issued some very bullish guidance for the first quarter, saying it expects sales in a range of $4.9 billion to $5.1 billion, representing a 45% jump from a year ago. Wall Street had earlier forecast first-quarter revenue of just $4.32 billion.<\/p>\n

For fiscal 2022, AMD is forecasting $21.5 billion in total sales, above the forecast of $19.26 billion. That would amount to a 31% jump from the year just gone.<\/p>\n

AMD\u2019s confidence stems from the ongoing surge in personal computer and electronics sales that began with the COVID-19 pandemic outbreak almost two years ago. It has recently launched new computer chips<\/a> that promise significant performance gains, allowing it to seriously challenge Intel Corp. in the PC segment.<\/p>\n

AMD\u2019s computing and graphics segment, which reflects those sales, pulled in fourth quarter revenue of $2.6 billion, up 32% from the year before. AMD said the growth was driven by high demand for its new Ryzen processors and Radeon graphics chips.<\/p>\n

The most impressive growth however was to be found in AMD\u2019s embedded, enterprise and semicustom segment, which includes computer server and games console chip sales. There, revenue jumped by 75%, to $2.2 billion, helped in part by increased sales<\/a> to cloud computing giants such as Amazon Web Services Inc.<\/p>\n

\u201cWe expect [semicustom] revenue to grow this year driven by continued strong demand for the latest Microsoft and Sony consoles,\u201d Su told analysts on a call, adding that the current console upgrade cycle is outpacing all prior generations.<\/p>\n

\u201cAMD crushed this quarter, setting records on revenue and earnings per share,\u201d said analyst Patrick Moorhead. \u201cMore impressively, it raised its first-quarter and full-year forecast. Lisa Su and the company are firing on all cylinders.\u201d<\/p>\n

AMD has been working to close its $35 billion acquisition of Xilinx Inc.<\/a>, with the deal expected to give the company more firepower to take on Intel in the data center chip market. On Jan. 27, AMD announced it had been given approval<\/a> from Chinese regulators for the deal to go ahead.<\/p>\n

\u201cThe only remaining regulatory review required is FTC approval of our HSR re-filing and we expect to close the transaction in the first quarter of 2022,\u201d Su said in response to a question today.<\/p>\n

Su also told analysts the company has enough chip production capacity to meet its sales forecasts in 2022. She explained that the company spent more than $1 billion in 2021 to secure long-term production capacity. Su also told analysts she expects the chip shortage will become \u201cless severe\u201d as the year progresses.<\/p>\n

Photo: AMD<\/h5>\n
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