Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

AMD Q4 Results Top Expectations as Strong Chip Demand Bolsters Growth

Published 01/26/2021, 04:17 PM
Updated 01/26/2021, 04:17 PM
© Reuters. AMD Earnings, Revenue Beat in Q4

By Yasin Ebrahim

Investing.com - Advanced Micro Devices jumped in after-hours trade on Tuesday after reporting better-than-expected fourth-quarter results on strong demand for its chips amid ongoing supply shortages.

Advanced Micro Devices Inc (NASDAQ:AMD) shares gained 2.21% in after-hours trade following the report.

AMD announced earnings per share of $0.52 on revenue of $3.24 billion. Analysts polled by Investing.com anticipated EPS of $0.4704 on revenue of $3.02 billion.

For the full year 2021, AMD expects revenue growth of approximately 37% over 2020 driven by growth in all businesses. AMD expects non-GAAP gross margin to be approximately 47% for 2021.

The computing and graphics segment, which makes up the bulk of growth, reported that revenue was up 18% to $1.96 billion, driven primarily driven by strong sales of its Ryzen processors.

Enterprise, embedded and semi-custom segment, saw revenue rise 176% to $1.28 billion year-on-year and 13% quarter-over-quarter, driven by higher semi-custom and EPYC processor sales. 

Gross margin was flat year-on-year in the fourth-quarter at 45%, but is expected to tick higher in the first quarter.

 
For the first quarter of 2021, AMD expects revenue to be approximately $3.2 billion, plus or minus $100 million, an increase of approximately 79% year-over-year and down 1% sequentially. The year-over-year increase is expected to be driven by growth in all businesses. AMD expects non-GAAP gross margin to be approximately 46% in the first quarter of 2021.
 
"Our 2021 financial outlook highlights the strength of our product portfolio and robust demand for high-performance computing across the PC, gaming and data center markets. We are excited about the opportunities ahead and very confident in our long-term strategy as we continue executing our leadership product roadmaps," the company said.
 
 

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.