AMD CEO Lisa Su says chipmaker has reached a 'significant inflection point'
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Advanced Micro Devices (NASDAQ:AMD) Chief Executive Lisa Su said Tuesday that with the completion of its Xilinx acquisition and plans to acquire Pensando, the chipmaker has reached a "significant inflection point" in its technological transformation.
Su made her comments during a conference call to discuss AMD's (AMD) first-quarter results that included six weeks of revenue from Xilinx, which AMD (AMD) officially acquired on Feb. 14 in an all-stock deal worth almost $50 billion.
"[The addition of] Xilinx can't be overstated," Su said. "It significantly expands our product and technology portfolio."
For the quarter that ended March 26, AMD (AMD) earned $1.13 a share, excluding one-time items, on revenue of $5.9 billion. Those results topped the estimates of Wall Street analysts, who had forecast AMD (AMD) to earn $0.93 a share, on $5.57 billion in revenue.
AMD's (AMD) results were highlighted by its enterprise, embedded and semi-custom segment, with sales that rose 88% from a year ago, to $2.5 billion, and its computing and graphics products, where revenue of $2.8 billion was up 33% from the first quarter in 2021. Xilinx contributed $559 million in sales for the six weeks it was included in AMD's (AMD) results.
With that performance in the bag, investors sent AMD's (AMD) shares up by more than 6% in after-hours trading.
Going forward, AMD (AMD) said it expects its second-quarter revenue to be in a range of $6.3 billion to $6.7 billion, with gross profit margins, excluding one-time items, of 54%.
Su said that due to strength in areas such as gaming, automotive, graphics and its Xilinx, AMD's (AMD) full-year revenue rise by 60% from 2021, to $26.3 billion. Because of its growth in new areas, along with its pending acquisition of Pensando, "we see a significantly larger total addressable market."
Earlier this week, several chip industry analysts said that the recent data from the Semiconductor Industry Association suggests the chip sector is showing more signs of strength that should extend into the coming months.