Advanced Micro Devices Inc forecast stronger- than-expected full year and second-quarter revenue, with the data center boom boosting demand for its chips,and its shares rose in after-hours trade. AMD chief executive Lisa Su stated that, each of their 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. The strong outlook and earnings pushed up AMD shares by 3% in after-hours trading.
Worldwide spending on cloud infrastructure services jumped 34% to $55.9 billion. This is according to data from research firm Canalys, highlighting huge opportunities for companies supplying chips and other hardware to the industry. Still Summit Insights Group analyst Kinngai Chan called AMD’s second quarter outlook aggressive and added there was more downside risk in the PC and graphic card markets. Graphic card prices have been falling as demand for consumer products that use them have been softening with the lockdown in China and inflation concerns. On the earnings call with analysts, Su said AMD expected the total PC market to fall by a high single digit this year. She stated that their focus remains on the premium, gaming and commercial portions of the market where they see strong growth opportunities and expect to continue gaining overall client revenue share. The company said that it expects revenue of about $6.5 billion. Analysts on average were expecting revenue of $6.38 billion. For the full year it forecast $26.3 billion, up about 60%. AMD earned $1.13 per share, during the quarter, compared to Street’s estimates of 91 cents per share. AMD finalized the acquisition of Xilinx Inc in mid-February. The earnings and forecasts include its results.