(Reuters) - Advanced Micro Devices on Tuesday beat quarterly revenue estimates and forecast a robust 2021 on strong demand for its chips used in PCs, data centers and gaming consoles from companies and customers adapting to remote working.
The company has been prying away central processor market share from rival Intel Corp, whose manufacturing operations have stumbled in recent years while contract factories used by AMD such as Taiwan Semiconductor Manufacturing Co grabbed a lead in making faster chips.
With the $35 billion buyout deal for chipmaker Xilinx Inc in October, AMD aims to bolster its data center chip business.
The company also supplies chips for gaming consoles, with sales bolstered in the fourth-quarter by new devices from Microsoft and Sony during the holiday season quarter. But the consoles were in persistently short supply at retail outlets because of a global chip shortage that affected AMD and other players.
AMD’s fourth-quarter revenue rose to $3.24 billion, beating analysts’ estimate of $3.03 billion, according to IBES data from Refinitiv. Excluding items, the company earned 52 cents per share, topping estimates of 47 cents.
Revenue in the computing and graphics unit, where it supplies processors and graphics chips for PCs, was $1.96 billion versus analysts’ estimates of $1.8 billion, according to data from FactSet.
In the company’s enterprise and semi-custom segment, which includes data center processor chips and gaming console chips, revenue was $1.28 billion, compared with analysts’ estimates of $1.24 billion.
AMD’s graphics chips have also seen a surge in demand from cryptocurrency miners.
The company projected first-quarter revenue to be about $3.2 billion, plus or minus $100 million, compared to analysts’ average estimate of $2.74 billion, according to Refinitiv.
AMD forecast 2021 sales of $13.37 billion, above analysts’ estimates of $12.28 billion.
The company’s shares, which had doubled last year, were down about 2% in extended trading.
Reporting by Chavi Mehta in Bengaluru; Editing by Sriraj Kalluvila
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January 27, 2021 at 04:19AM
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AMD sees strong 2021 on data center, gaming chips demand - Reuters
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