Chipmaker AMD’s Q1 Revenue Jumps 71% On Strong PC Sales - InvestingChannel

Chipmaker AMD’s Q1 Revenue Jumps 71% On Strong PC Sales

Chipmaker Advanced Micro Devices’ (AMD) stock is up 6% after the company reported first-
quarter results that beat analysts’ expectations.

AMD reported earnings per share (EPS) of $1.13 U.S. versus $0.91 U.S. that was expected,
which was up 117% year-over-year. The company’s revenue totaled $5.89 billion U.S.

compared to $5.52 billion U.S. that was expected on Wall Street, up 71% from a year earlier.
AMD said it expected $6.5 billion U.S. in sales in the current second quarter, ahead of analyst
expectations of $6.38 billion U.S.

AMD’s results suggest that the chipmaker is still firing on all cylinders, with every one of the
company’s individual lines of business growing by double digits during Q1.

One highlight for AMD is its high-end server chip business, which primarily competes with Intel
(INTC). Some data points show that AMD has taken market share from its main rival.

AMD has also benefitted from chips used in personal computers (PCs). Sales of PCs exploded
during the pandemic as people needed laptops to work from home or attend school remotely.
PC sales are reported in AMD’s computing and graphics segment, which rose 33% on an
annual basis and was 8% higher than the fourth and final quarter of last year.

Cloud server sales are reported in AMD’s Embedded, Enterprise, and Semi-custom segment,
and they increased 88% to $2.5 billion U.S. in the first quarter from a year earlier. AMD said the
rise was driven by higher server processor sales, as well as semi-custom sales, which are the
microchips used in video game consoles.

Additionally, AMD said it completed the acquisition of Xilinx in February of this year. The deal
was originally announced in 2020 with a $35 billion U.S. price tag. AMD also said it repurchased
$1.9 billion U.S. of its own stock during the first quarter.

AMD stock has had a rough start to the year, falling nearly 40% prior to today to $91.13 U.S. a
share amid a broader downturn in technology stocks.

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