November 2, 2022
In extended trading, AMD shares rose as much as 6% after the chipmaker indicated that its server chip business will grow in the coming quarters despite falling profits from the PC market.
It also announced that it had gained strength in its data center business and pledged to be cautious about spending as the PC market continued to slump.
AMD’s third-quarter revenue rose 29% and net income fell 93% to $66 million, mainly due to AMD’s $49 billion acquisition of Xilinx, a maker of field-programmable gate array chips.
Revenue for the current quarter is expected to be $5.5 billion, plus or minus $300 million, with analysts expecting an average of $5.85 billion, according to Refinitiv data.
AMD expects full-year revenue of about $23.5 billion, plus or minus $300 million, up 43% from 2021, compared with analyst expectations of $23.9 billion.
To cope with macroeconomic headwinds, AMD executives said in the earnings speech that they would control spending and slow hiring.
AMD, which makes CPUs and graphics processors for PCs and data centers, has also taken a hit as inflation has reduced consumer demand for laptops and other electronic devices, prompting electronics makers to cut orders for its chips.
The sources for this piece include an article in Reuters.
