قالب وردپرس درنا توس
Home / Technology / AMD shares are moving to record highs after gaining profits, raising the annual forecast

AMD shares are moving to record highs after gaining profits, raising the annual forecast



Shares of Advanced Micro Devices Inc. headed for record highs in overtime trading on Tuesday after the chip company reported second-quarter earnings that beat expectations and boosted forecasts for the full year despite the COVID-19 pandemic.

AMD AMD,
-1.97%
net income for the second quarter was $ 157 million, or 13 cents per share, compared to $ 35 million, or 3 cents per share, for the prior period. After adjusting compensation based on inventories and other factors, the chip company reported earnings of 1

8 cents per share, compared to 8 cents per share last year. Revenue rose to $ 1.93 billion from $ 1.53 billion in the quarter.

Analysts polled by FactSet forecast a profit adjustment of 16 cents on revenue of $ 1.85 billion.

AMD has announced that it now expects revenue to grow by about 32% by 2019, equal to annual sales of about $ 8.88 billion, up from $ 8.08 billion to $ 8.75 billion. reports FactSet. On average, analysts expected revenue by 2020 of about $ 8.4 billion, according to FactSet.

“We achieved high results in the second quarter, led by sales of laptops and server processors, as Ryzen and Epyc’s revenues more than doubled compared to a year ago,” said Lisa Soo, President and CEO of AMD. “Despite some macroeconomic uncertainty, we are increasing our full-year revenue forecast as we move into the next phase of growth driven by the acceleration of our business in many markets.”

Patrick Moorhead, chief analyst at Moor Insights & Strategy, who believed AMD remained conservative at the beginning of the year, believes sales have even more room to launch.

“I think this new forecast is conservative because I think Epyc’s revenue will grow even more,” Moorhead said.

Shares rose more than 10% after an hour, after falling by 2% in the regular session closed at $ 67.61, ahead of AMD’s intraday record – $ 71.63, set at the end of last week. After the leading SP&P 500 SPX index,
-0.64%
in annual percentage growth in both 2018 and 2019, AMD shares have risen more than 47% so far in 2020, as S&P fell 0.4%.

AMD’s results follow last week’s surprise that Intel Corp. INTC,
-0.66%
delayed the release of its 7-nanometer chips at least until the end of 2022 due to production problems. AMD has already developed 7-nm chips for servers and personal computers and has found a larger market share and increased sales and profits with these products.

Read:AMD weathers the coronavirus, and competes the most

AMD said it sold $ 1.37 billion in computing and graphics chips, up 45% from last year at $ 940 million, according to analysts’ expectations of 45% to $ 1.36 billion. Sales of embedded and semi-embedded enterprise chips, a unit that includes revenue from data centers and game consoles, were $ 565 million, down 4% from $ 591 million a year ago, but well ahead of analysts’ average forecasts of a decline of 18 % to $ 485.5 million.

In the third quarter, AMD forecast sales of $ 2.45 billion to $ 2.65 billion, while analysts forecast average revenue of $ 2.31 billion. The company and analysts expect AMD’s embedded and semi-acceptable business to accelerate in the second half of the year when Sony Corp.’s new video game consoles. SNE,
-1.15%
and Microsoft Corp. MSFT,
-0.89%
which contain AMD chips.


Source link