Advanced Micro Devices raised its annual revenue forecast on Tuesday, betting on strong demand for its chips used in data centers and personal computers.
The chip designer’s shares rose about 4% in extended trading after it also reported better-than-expected results for the first quarter.
The company has been prying away central processor chip market share from Intel Corp, whose manufacturing operations have fallen behind contract factories used by AMD, such as Taiwan Semiconductor Manufacturing Co.
It has also benefited from a surge in demand for its graphics chips from gamers who have spent more time playing and upgrading their equipment during the COVID-19 pandemic.
The company said it now expected 2021 revenue to rise 50% from a year earlier, implying a figure of $14.64 billion, compared with its previous forecast of a 39% jump.
Revenue in the first quarter soared 93% to $3.45 billion, beating a Refinitiv IBES estimate of $3.21 billion, thanks in part to higher average selling prices for its chips and as AMD wins market share from Intel in high-end laptops and PCs.
Sales in AMD’s computing and graphics business, which includes graphics and central processor chips for personal computers, rose 46% to $2.10 billion.
Its enterprise, embedded and semi-custom segment, the unit that houses data center chips, posted an almost four-fold jump in sales to $1.35 billion.
Excluding items, the company earned 52 cents per share, exceeding expectations of 44 cents per share.
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