Reuters Advanced Micro Devices on Tuesday beat quarterly revenue estimates and forecast robust 2021 sales on strong demand for its chips used in PCs, data centers and gaming consoles from companies and customers adapting to remote working.
The company has been prying away central processor market share from rival Intel Corp, whose manufacturing operations have stumbled in recent years while contract factories used by AMD such as Taiwan Semiconductor Manufacturing Co grabbed a lead in making faster chips.
The company also supplies chips for gaming consoles, which boosted its fourthquarter sales as new devices from Microsoft and Sony debuted during the holiday season quarter. But the consoles were in persistently short supply at retail outlets because of a global chip shortage that affected AMD and other players.
The company projected firstquarter revenue to be about 3.2 billion, plus or minus 100 million, compared to analysts average estimate of 2.74 billion, according to Refinitiv.
AMD forecast 2021 sales of 13.37 billion, above analysts estimates of 12.28 billion.
The companys shares, which had doubled last year, were down about 2 in extended trading.
Analysts pinned the decline to AMDs gross margin forecast. AMD said it expects firstquarter and fullyear gross margins of 46 and 47 respectively, which were in line with Wall Street estimates but a little underwhelming given AMDs booming revenue growth, Kinngai Chan of Summit Insights Group said.
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