AMD saw its shares push up as much as 8 percent in Tuesday’s extended trading, just after posting its results for the first-quarter results which surpassed the estimates of analysts.
For the first quarter ended March, the chipmaker reported earnings per share of $1.13, adjusted compared to the expectation of $0.91 that analysts expected, according to Refinitiv. Earnings per share was up 117 percent from the same period a year ago. Revenue surpassed analysts’ expectations of $5.52 billion and was up 71 percent from the year-ago period. For the quarter, revenue came in at $5.89 billion.
The company says it expects sales of $6.5 billion in the second quarter. Analysts, on the other hand, expect sales of $6.38 billion for the current quarter. In the quarter, sales soared 71 percent, suggesting that the company is experiencing strong growth. It also experienced double digits growth in its individual business wings in the first quarter.
In the first quarter, AMD completed the acquisition of Xilinx. Although the deal was completed in February, AMD first announced the deal tagged at $35 billion back in 2020. The company said that its first-quarter earnings result includes six weeks of revenue from the deal adding that without sales from Xilix, revenue would have only grown by 55 percent YoY to $5.3 billion.
In the quarter, AMD repurchased $1.9 billion worth of its stock.
With a decline expected in the sales of PC as a result of people returning back to the offices, classrooms, etc., AMD’s numbers shows that there might not be so much of a decline afterall. “Although the PC market is experiencing some softness coming off multiple quarters of near-record unit shipments, our focus remains on the premium, gaming, and commercial portions of the market where we see strong growth opportunities and expect to continue gaining overall client revenue share,” AMD CEO Lisa Su said, emphasizing that the company believes that it has gained a considerable market share in PC chips for eight straight quarters.
AMD’s computing and graphics segment which envelopes PC sales rose 33 percent YOY and was up 8 percent from the fourth quarter of 2021. Sales of central processors and graphic processors boosted sales, the company said.
AMD’s Embedded, Enterprise, and Semi-custom segment, which covers cloud server sales was up 88 percent to $2.5 billion. The increase was a result of higher server processors and semi-custom sales.