AMD Stock: Advanced Micro Devices Scorches Fourth-Quarter Targets

Chipmaker Advanced Micro Devices (AMD) late Tuesday trounced Wall Street’s targets for the fourth quarter. It also guided higher for the current quarter and full year. AMD stock jumped in extended trading.

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The Santa Clara, Calif.-based company earned an adjusted 92 cents a share on sales of $4.83 billion in the December quarter. Analysts had expected AMD earnings of 76 cents a share on sales of $4.52 billion, according to FactSet. On a year-over-year basis, AMD earnings soared 77% while sales climbed 49%.

Strong sales of Epyc server processors fueled AMD’s results in the fourth quarter.

For the current quarter, AMD forecast sales of $5 billion, vs. analyst estimates for $4.35 billion. Its guidance would translate to sales growth of 45% year over year in the first quarter.

For the full year, AMD expects sales of $21.5 billion, an increase of 31% over its 2021 revenue. Analysts had predicted $19.29 billion in sales for 2022, FactSet said.

AMD Stock Pops In Late Trades

In after-hours trading on the stock market today, AMD stock leapt 9.2%, near 127.55. During the regular session Tuesday, AMD stock rose 2.2% to close at 116.78.

“Each of our businesses performed extremely well (in 2021), with data center revenue doubling year over year driven by growing adoption of AMD Epyc processors across cloud and enterprise customers,” Chief Executive Lisa Su said in a news release.

She added, “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.”

AMD makes central processing units for PCs and servers. It also makes graphics processors for PCs and data centers.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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