Advanced Micro Devices on Tuesday forecast sales above expectations in 2022, with its share remaining above the 11% aftermarket as strong demand for its chips used in data center servers takes the brunt of global delivery difficulties.
AMD’s strong forecast also boosted shares of chipmakers Nvidia and Qualcomm.
The chip designer also surpassed fourth-quarter revenue estimates as it sold more higher-end chips to soften the blow from the industry’s supply crisis.
“Each of our businesses performed exceptionally 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 take advantage of burgeoning cloud adoption, while its flexible model of outsourced manufacturing has helped the company pry market share from rival Intel Corp.
“We expect another year of significant growth in 2022 as we expand our current portfolio and launch our next-generation PC, gaming and data center products,” said Su.
AMD has made a number of new launches, including updates to the graphics processor family used for cloud and high-end gaming.
For the full year, AMD forecasts revenue of approximately $21.5 billion, compared to 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 to estimates of $4.53 billion.
Net income fell from $1.78 billion last year to $974 million. Excluding items, AMD earned 92 cents a share, surpassing estimates of 76 cents.
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