Advanced Micro Devices (AMD) has once again fired up analysts’ forecasts for the second quarter, fueled largely by strong demand for chips for game consoles, PCs and servers.
“Demand for computers is just exploding everywhere,” said AMD CEO Dr. Lisa Su on Yahoo Finance Live. “I think whether it’s on PCs where you work from home, study at home or return to the office, people want better devices and especially in the data center where there’s just an incredible need for more capabilities given all the collaboration we’re into. doing it.”
Those favorable industry dynamics and AMD’s leading position in it made for another dazzling quarter for the chipmaker.
AMD’s first quarter non-GAAP net sales were up 99% year over year (faster than the 93%). Operating profit rose 294% year-on-year (faster than the 223% growth in the first quarter). Revenue grew in both of AMD’s business segments, led by a 183% increase in the enterprise, embedded and semi-custom businesses.
Here’s how AMD performed compared to Wall Street’s estimates for the first quarter:
Net sales: $3.45 Billion vs. $3.61 Billion
Gross profit margin: 48% vs. 47%
Adjusted Diluted WPA: $0.63 vs. $0.54
AMD raised its full-year revenue growth outlook from 50% earlier to 60%. Gross profit margins are pegged at 48%, compared to a previous expectation of 47%.
Most on Wall Street expect the company’s momentum to continue through 2022.
“Overall, we remain impressed with AMD’s strong product execution, expect equity gains to continue through (at least) 2H21, and applaud the company’s reinvestment in opex to fuel future growth,” said Deutsche Bank analyst Ross Seymore.