AMD posts 29 per cent revenue growth amid data center boom

In extended trading, AMD shares rose as much as 6 per cent after the chipmaker indicated that its server chip business will grow in the coming quarters despite falling profits from the PC market.

It also announced that it had gained strength in its data center business and pledged to be cautious about spending as the PC market continued to slump.

AMD’s third-quarter revenue rose 29 per cent and net income fell 93 per cent to $66 million, mainly due to AMD’s $49 billion acquisition of Xilinx, a maker of field-programmable gate array chips.

Revenue for the current quarter is expected to be $5.5 billion, plus or minus $300 million, with analysts expecting an average of $5.85 billion, according to Refinitiv data.

AMD expects full-year revenue of about $23.5 billion, plus or minus $300 million, up 43 per cent from 2021, compared with analyst expectations of $23.9 billion.

To cope with macroeconomic headwinds, AMD executives said in the earnings speech that they would control spending and slow hiring.

AMD, which makes CPUs and graphics processors for PCs and data centers, has also taken a hit as inflation has reduced consumer demand for laptops and other electronic devices, prompting electronics makers to cut orders for its chips.

The sources for this piece include an article in Reuters.

IT World Canada Staff
IT World Canada Staff
The online resource for Canadian Information Technology professionals.

Would you recommend this article?


Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.

Jim Love, Chief Content Officer, IT World Canada

Featured Download

ITW in your inbox

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.

More Best of The Web