AMD stands strong 2021 on gaming chips Demand
Advanced Micro Devices on Tuesday beat quarterly revenue estimates and forecast robust 2021 sales on strong demand for its chips used in PCs, data centers and gaming consoles from companies and customers adapting to remote working.
The company has been prying away central processor market share from rival Intel Corp, whose manufacturing operations have stumbled in recent years while contract factories used by AMD such as Taiwan Semiconductor Manufacturing Co grabbed a lead in making faster chips.
The company also supplies chips for gaming consoles, which boosted its fourth-quarter sales as new devices from Microsoft and Sony debuted during the holiday season quarter. But the consoles were in persistently short supply at retail outlets because of a global chip shortage that affected AMD and other players.
The company projected first-quarter revenue to be about $3.2 billion, plus or minus $100 million, compared to analysts’ average estimate of $2.74 billion, according to Refinitiv.
AMD forecast 2021 sales of $13.37 billion, above analysts’ estimates of $12.28 billion.
AMD’s fourth-quarter revenue rose to $3.24 billion, beating analysts’ estimate of $3.03 billion, according to IBES data from Refinitiv. Excluding items, the company earned 52 cents per share, topping estimates of 47 cents.
Revenue in the computing and graphics unit, where it supplies processors and graphics chips for PCs, was $1.96 billion versus analysts’ estimates of $1.8 billion, according to data from FactSet.
In the company’s enterprise and semi-custom segment, which includes data center processor chips and gaming console chips, revenue was $1.28 billion, compared with analysts’ estimates of $1.24 billion.
AMD’s graphics chips have also seen a surge in demand from cryptocurrency miners.


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