Chipmaker Advanced Micro Devices late Tuesday beat analyst estimates for the first quarter thanks to strong sales of server chips for data centers. It also guided higher for the current quarter and full year. AMD stock jumped in extended trading.
The Santa Clara, Calif.-based company earned an adjusted $1.13 a share on sales of $5.89 billion in the March quarter. Analysts polled by FactSet expected AMD earnings of 91 cents a share on sales of $5.01 billion. On a year-over-year basis, AMD earnings surged 117% while sales increased 71%.
AMD's first-quarter results include partial-quarter results from the recently completed acquisition of Xilinx, which closed Feb. 14. Excluding Xilinx, AMD sales rose 55% to $5.33 billion.
"Each of our businesses grew by a significant double-digit percentage year over year, led by Epyc server processor revenue more than doubling for the third straight quarter," Chief Executive Lisa Su said in a news release.
She added, "Demand remains strong for our leadership products, with our increased full-year guidance reflecting higher AMD organic growth and the addition of the growing Xilinx business."
AMD Stock Jumps After Report
In after-hours trading on the stock market today, AMD stock leapt 5% to 95.72. During the regular session Tuesday, AMD stock rose 1.4% to close at 91.13.
For the current quarter, AMD forecast revenue of $6.5 billion, up 69% year over year. Analysts had been looking for $5.14 billion.
For the full year, AMD now expects revenue of $26.3 billion, up 60% over 2021. It previously guided to sales growth of 31%. Wall Street had predicted $21.48 billion in sales.
AMD stock ranks No. 12 out of 30 stocks in IBD's fabless chipmaker industry group, according to IBD Stock Checkup. It has a so-so IBD Composite Rating of 76 out of 99. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
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