AMD says data center boom will boost revenue; shares rise By Reuters

By Tiyashi Datta and Jane Lanhee Lee

(Reuters) -Superior Micro Gadgets Inc on Tuesday forecast stronger- than-expected full 12 months and second-quarter income, with the info heart growth boosting demand for its chips, and its shares rose in after-hours commerce.

“Every of our companies grew by a big double digit

proportion year-over-year, led by EPYC server processor income greater than doubling for the third straight quarter,” stated AMD chief government Lisa Su in its assertion.

The sturdy outlook and earnings pushed up AMD shares by 3% in after-hours buying and selling.

Worldwide spending on cloud infrastructure providers jumped 34% to $55.9 billion within the first quarter, in accordance with information from analysis agency Canalys, highlighting large alternatives for firms supplying chips and different {hardware} to the business.

Nonetheless Summit Insights Group analyst Kinngai Chan known as AMD’s second quarter outlook “aggressive” and added there was extra draw back danger within the PC and graphic card markets.

Graphic card costs have been falling in latest weeks as demand for shopper merchandise that use them have been softening with the lockdown in China and inflation considerations.

The corporate stated it expects income of about $6.5 billion, plus or minus $200 million for the present quarter. Analysts on common had been anticipating income of $6.38 billion, in accordance with Refinitiv information. For the complete 12 months it forecast $26.3 billion, up about 60%, and forward of analysts estimates of $25.145 billion in accordance with Refinitiv IBES information.

AMD’s first-quarter income got here in at $5.89 billion, above analysts’ common estimate of $5.52 billion, in accordance with Refinitiv IBES information.

AMD finalized the acquisition of Xilinx Inc (NASDAQ:) in mid-February. The earnings and forecasts embrace its outcomes.