Advanced Micro Devices forecast 2022 revenue above expectations on Tuesday, vaulting its shares above 11% aftermarket, as stellar demand for its chips used in data center servers cushioned the blow from global supply snags.
AMD’s strong forecast also boosted shares of chipmakers Nvidia and Qualcomm.
The chip designer surpassed revenue estimates in the fourth quarter too as it sold more higher-priced chips to soften the hit from the supply crunch ailing the industry.
“Each of our businesses performed extremely well, with data center revenue doubling year-over-year,” Chief Executive Officer Lisa Su said in a statement.
AMD has dived deeper into the data center market to capitalize on booming cloud adoption, while its agile model of outsourced manufacturing has helped the company pry away market share from rival Intel Corp.
“We expect another year of significant growth in 2022 as we ramp our current portfolio and launch our next generation of PC, gaming and data center products,” Su said.
AMD has made a number of new launches, including updates to its graphics processor lineup used for cloud and high-quality gaming.
For the full year, AMD forecast revenue of about $21.5 billion, compared with analysts’ average estimate of $19.27 billion, according to IBES data from Refinitiv.
The California-based company reported adjusted fourth-quarter revenue of $4.83 billion, compared with estimates of $4.53 billion.
Net income fell to $974 million from $1.78 billion last year. Excluding items, AMD earned 92 cents per share, surpassing estimates of 76 cents.
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