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AMD Q4 Results Top Expectations as Strong Chip Demand Bolsters Growth

Published 01/26/2021, 04:17 PM
© Reuters. AMD Earnings, Revenue Beat in Q4
AMD
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By Yasin Ebrahim

Investing.com - Advanced Micro Devices jumped in after-hours trade on Tuesday after reporting better-than-expected fourth-quarter results on strong demand for its chips amid ongoing supply shortages.

Advanced Micro Devices Inc (NASDAQ:AMD) shares gained 2.21% in after-hours trade following the report.

AMD announced earnings per share of $0.52 on revenue of $3.24 billion. Analysts polled by Investing.com anticipated EPS of $0.4704 on revenue of $3.02 billion.

For the full year 2021, AMD expects revenue growth of approximately 37% over 2020 driven by growth in all businesses. AMD expects non-GAAP gross margin to be approximately 47% for 2021.

The computing and graphics segment, which makes up the bulk of growth, reported that revenue was up 18% to $1.96 billion, driven primarily driven by strong sales of its Ryzen processors.

Enterprise, embedded and semi-custom segment, saw revenue rise 176% to $1.28 billion year-on-year and 13% quarter-over-quarter, driven by higher semi-custom and EPYC processor sales. 

Gross margin was flat year-on-year in the fourth-quarter at 45%, but is expected to tick higher in the first quarter.

 
For the first quarter of 2021, AMD expects revenue to be approximately $3.2 billion, plus or minus $100 million, an increase of approximately 79% year-over-year and down 1% sequentially. The year-over-year increase is expected to be driven by growth in all businesses. AMD expects non-GAAP gross margin to be approximately 46% in the first quarter of 2021.
 
"Our 2021 financial outlook highlights the strength of our product portfolio and robust demand for high-performance computing across the PC, gaming and data center markets. We are excited about the opportunities ahead and very confident in our long-term strategy as we continue executing our leadership product roadmaps," the company said.
 
 

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