Lisa Su, president and chief govt officer of Advanced Micro Units (AMD), holds a third technology Ryzen desktop processor while talking all the intention thru a keynote session at the 2019 User Electronics Sigh (CES) in Las Vegas, Jan. 9, 2019.
David Paul Morris | Bloomberg | Getty Photos
AMD inventory became as soon as flat in prolonged trading after the company announced earnings and earnings that beat Wall Side dual carriageway’s already excessive expectations for the chipmaker.
Here is how AMD did versus Wall Side dual carriageway expectations:
- EPS: $0.52, adjusted, versus $0.47 primarily primarily based totally on Refinitiv consensus estimates
- Revenue: $3.24 billion, versus $3.03 billion primarily primarily based totally on Refinitiv consensus estimates
AMD also provided a stable forecast for the present quarter of between $3.1 billion and $3.3 billion and acknowledged that it expects 2021 earnings would grow 37%. AMD’s earnings in 2020 became as soon as up 45% yr-over-yr.
The very finest spotlight for AMD this quarter became as soon as its venture section which became as soon as up 176% yr-over-yr and up 13% from final quarter to $1.28 billion. That division sells server chips to boot as CPUs and graphics processors for sport consoles love the Sony PS5 and Microsoft Xbox One.
AMD attributed the enlargement to its semi-custom sales, which is what it calls its console chip industry, and acknowledged there became as soon as stable request for the present technology of Sony and Microsoft consoles. It also acknowledged that its server earnings grew on a sequential basis.
AMD’s industry promoting processors and graphics chips for PCs, which it calls Computing & Graphics, also reported stable results, rising 18% yr-over-yr to $1.96 billion. That became as soon as driven by an assemble bigger in processor sales, AMD acknowledged.
AMD launched recent processors and graphics chips final drop which were constantly offered out. It acknowledged that its desktop CPU earnings grew on an annual basis, suggesting that its Ryzen CPUs are competing fiercely with Intel for market half.
Firstly of trading on Tuesday, shares of AMD were up 85% throughout the final yr. That is partly because of of investor enthusiasm for semiconductors, but it absolutely’s also because of previously yr AMD has won a technological edge on its most distinguished competitor, Intel. Intel became as soon as flat in prolonged trading.
AMD outsources its manufacturing to companions in conjunction with Taiwan’s TSMC, whereas Intel is restful dedicated to manufacturing its simplest chips. That is allowed AMD to win entry to more helpful chip manufacturing on a so-called 5-nanometer task, which makes denser and more efficient chips.
In October, AMD announced that it planned to obtain close Xilinix in a deal price $35 billion that might per chance restful interior sight the tip of this yr. Xilinix makes a speciality of in actual fact educated chips that can successfully tackle responsibilities love compressing movies, in comparison to AMD’s general cause processors. The acquisition is anticipated to present AMD more firepower to compete with Intel in the records heart chip market. AMD acknowledged on Tuesday the transaction became as soon as restful no longer off course to interior sight the tip of the yr.