AMD forecasts current-quarter revenue above estimates
2022.05.03 23:46
FILE PHOTO: A sign of AMD is seen at the China Digital Entertainment Expo and Conference, also known as ChinaJoy, in Shanghai, China July 30, 2021. Picture taken July 30, 2021. REUTERS/Aly Song
(Reuters) – Advanced Micro Devices (NASDAQ:AMD) Inc forecast second-quarter revenue above market expectations on Tuesday, betting on steady demand for its chips used in data centers and gaming consoles.
A booming cloud computing market is fuelling strong sales of chips used in data centers, helping AMD overcome a weakness in its PC chip business, one of its main growth engines during the pandemic.
Worldwide spending on cloud infrastructure services jumped 34% to $55.9 billion in the first quarter, according to data from research firm Canalys, highlighting huge opportunities for companies supplying chips and other hardware to the industry.
The company said it expects revenue of about $6.5 billion, plus or minus $200 million. Analysts on average were expecting revenue of $6.38 billion, according to Refinitiv data.
AMD’s first-quarter revenue came in at $5.89 billion, above analysts’ average estimate of $5.52 billion, according to Refinitiv IBES data.
