AMD (AMD.US) shares jumped over 3.0% before the opening bell after the chip maker posted upbeat earnings and revenue figures and expects business to improve in the second half of the year in contrast to its main competitor Intel, which reported disappointing earnings and said dwindling PC demand would pressure margins and have negative impact on near-term profits.
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EPS fell 27.2% YoY to $0.69, versus $0.67 per share expected
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Revenue rose 30% to $5.6 billion, versus $5.5 billion expected
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Gaming sector revenue fell 7% YoY to $1.6 billion, while data center jumped 42% to $1.7 billion.
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The client segment, which includes personal computing, recorded a 51% revenue drop to $903 million while embedded segment revenues reached $1.4 billion.
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For the first quarter of 2023 company forecasts revenue in the region of $5.3 billion, plus or minus $300 million, below Refinitiv estimates of $5.48 billion. AMD expects that growth in data center and embedded segments will offset lower sales from gaming and client segments.
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“2022 was a strong year for AMD as we delivered best-in-class growth and record revenue despite the weak PC environment in the second half of the year," said CEO Lisa Su . "Although the demand environment is mixed, we are confident in our ability to gain market share in 2023 and deliver long-term growth based on our differentiated product portfolio," Su said in a statement.
Highlights of AMD Q4 earnings report. Revenue jumped 16%, however profit decreased. Source: Alpha Street
AMD (AMD.US) stock rose more than 3.0% in premarket and broke above upper limit of the broad descending channel. Price is approaching the key resistance zone at $81.40, which is marked with 23.6% Fibonacci retracement of the downward wave launched at the end of November 2021. If buyers manage to break higher, upward correction may gain steam. Source: xStation5
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