AMD inventory rose Wednesday after the chipmaker reported stronger-than-expected information heart chip gross sales within the fourth quarter. However Superior Micro Gadgets (AMD) tempered that information with mushy steerage for the present interval.
The Santa Clara, Calif.-based firm late Tuesday stated it earned an adjusted 69 cents a share on gross sales of $5.6 billion within the December quarter. Analysts polled by FactSet had anticipated AMD earnings of 67 cents a share on gross sales of $5.51 billion.
On a year-over-year foundation, AMD earnings fell 25% whereas gross sales rose 16%. The acquisition of Xilinx boosted income and helped offset declining PC and gaming chip gross sales.
Within the fourth quarter, AMD’s PC chip gross sales dropped 51% yr over yr to $903 million amid weak private laptop demand. Gaming section income slid 7% to $1.6 billion.
In the meantime, information heart chip gross sales elevated 42% to $1.7 billion, pushed by Epyc server processors.
AMD Inventory Rises After Report
For the present quarter, AMD predicted gross sales of $5.3 billion, down 10% yr over yr. Analysts had been in search of $5.5 billion within the first quarter.
In morning trades on the inventory market immediately, AMD inventory superior 3.7% to 77.94. Throughout the common session Tuesday, AMD inventory climbed 3.7% to shut at 75.15.
“Though the demand setting is combined, we’re assured in our capability to achieve market share in 2023 and ship long-term progress primarily based on our differentiated product portfolio,” Chief Government Lisa Su stated in a information launch.
AMD inventory ranks No. 12 out of 34 shares in IBD’s fabless semiconductor business group, in keeping with IBD Inventory Checkup. It has a so-so IBD Composite Ranking of 72 out of 99. The Composite Ranking scores a inventory’s key progress metrics in opposition to all different shares no matter business group.
Observe Patrick Seitz on Twitter at @IBD_PSeitz for extra tales on shopper know-how, software program and semiconductor shares.
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