Advanced Micro Devices (AMD) forecast second-quarter revenue above market expectations on Tuesday (May 3), betting on steady demand for its chips used in data centers and gaming consoles.
A booming cloud computing market is fuelling strong sales of chips used in data centers, helping AMD overcome a weakness in its PC chip business, one of its main growth engines during the pandemic.
Worldwide spending on cloud infrastructure services jumped 34 per cent to US$55.9 billion in the first quarter, according to data from research firm Canalys, highlighting huge opportunities for companies supplying chips and other hardware to the industry.
The company said it expects revenue of about US$6.5 billion, plus or minus US$200 million. Analysts on average were expecting revenue of US$6.38 billion, according to Refinitiv data.
AMD’s first-quarter revenue came in at US$5.89 billion, above analysts’ average estimate of US$5.52 billion, according to Refinitiv IBES data.