AMD CEO Su says servers to lead 'very strong' demand in 2022
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Advanced Micro Devices (NASDAQ:AMD) Chief Executive Dr. Lisa Su said the company should experience "very strong" demand for its products in 2022, led by strength in its server products after the company posted fourth-quarter results that beat expectations.
"We've been working on the supply chain for the last four or five quarters, knowing the growth we have from a product standpoint," Su said on the call. "We've made significant investments in wafer capacity and substrate capacity and backend capacity. We feel very good about our ability to meet the guidance."
"Our goal is to have enough supply to meet the demand out there," Su added.
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.
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.
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 12% to $130.25 on back of the results.
Late last month, China approved AMD's (AMD) $35 billion purchase of Xilinx (NASDAQ:XLNX), noting it did not need CFIUS approval.