Advanced Micro Devices soars after Q4 earnings top expectations
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Advanced Micro Devices (NASDAQ:AMD) shares soared after the tech giant posted fourth-quarter results that beat expectations.
For the fourth-quarter, AMD said it generated $4.8 billion in revenue, earning 80 cents per share. A consensus of Wall Street analysts expected the company to generate $4.52 billion in revenue and earn 76 cents per share.
Aiding the quarter was AMD's Computing and Graphics and Enterprise, Embedded and Semi-Custom segments.
Gross margin, a closely watched measure for semiconductor companies, was 50% in the quarter, up 5% year-over-year and 2% sequentially, driven by a "richer product mix," the company added.
â2021 was an outstanding year for AMD with record annual revenue and profitability,â said AMD President and Chief Executive, Dr. Lisa Su in a statement. âEach of our businesses performed extremely well, with data center revenue doubling year-over-year driven by growing adoption of AMD EPYC processors across cloud and enterprise customers. We expect another year of significant growth in 2022 as we ramp our current portfolio and launch our next generation of PC, gaming and data center products.â
For the first-quarter, AMD said it expects revenue to be between $4.9 billion and $5.1 billion, up roughly 45% year-over-year and 4% sequentially, with non-GAAP gross margins of 50.5%. For all of 2022, AMD expects sales to be $21.5 billion, a jump of 31% over 2021, with non-GAAP gross margins of approximately 51%.
Wall Street analysts had expected the company to generate $19.26 billion in sales in 2022.
At last check, AMD shares were up nearly 6% to $123.28 on back of the results.
The company will hold a conference call at 5 p.m. to discuss the results.
Late last month, China approved AMD's (AMD) $35 billion purchase of Xilinx (NASDAQ:XLNX), noting it did not need CFIUS approval.