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AMD Posts Strongest Revenue Figure in Its History

May 4th, 2022 -

About 3 Mins
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AMD produced a stellar first quarter earnings report, beating estimates across the board. A strong data-center chip market and improved margins meant that adjusted earnings came in at $1.13, versus 47¢ a year ago and the 92¢ estimate.

The company also completed the acquisition of the data-center powerhouse Xilinx in the quarter, which allowed revenue to hit $5.9 billion, the highest quarterly figure in the company’s history. Analysts were expecting revenue to come in at $5.3 billion.

AMD is the second-largest computer processor manufacturer behind Intel, and Intel’s report last week was relatively shaky. Despite the weak personal computing market, where there are early indications of a glut in chips, AMD’s cutting-edge product suite and diversification have allowed it to outperform Intel recently.

Sales from the company’s computing and graphics segment ended the quarter at $2.8 billion, up 33% year over year. The faster growing data-center segment reported a $2.5 billion quarter against expectations of $2.35 billion.

The company posted an adjusted gross margin of 53% versus an estimate of 51.8%. AMD outsources the bulk of its manufacturing to Taiwan Semiconductors, which means that margins are thinner compared to Intel.

Furthermore, competition in the graphic chip segment will heat up going forward as Nvidia continues to lead that market and new entrant Intel has promised strong benchmark performance.

The chipmaker did offer strong guidance for the upcoming quarter and fiscal year. It expects annual revenue of $26.3 billion for 2022, up 60% year over year, versus expectations of $24.1 billion. It raised its gross margin outlook to 54% while analysts were calling for 52.2%. AMD shares were up over 4%, last trading at $95 in the after-market.

This content is provided for general information purposes only and is not to be taken as investment advice nor as a recommendation for any security, investment strategy or investment account.
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