After the bell on Tuesday, the company reported first-quarter earnings that beat analyst estimates, sending the stock up over 5% in extended trading.
The chipmaker did better than the Refinitiv consensus estimates.
In the current quarter, the company expects sales to be $6.5 billion, ahead of analyst expectations of $6.38 billion.
The results of the first quarter show that the chipmaker is still growing, with sales growing by over 70% and every line of business growing by double digits.
The high-end server chip business is one of the highlights for the company. Some data points show that the market share of the two companies has gone in different directions.
Some analysts think that PC sales could go down this year after two years in which shipments exploded as people used laptops to work from home or go to school remotely. Some investors think that the PC boom is over, but the company that supplies the processor at the heart of many laptops and desktops isn't feeling the decline.
Although the PC market is experiencing some softness coming off multiple quarters of near-record unit shipments, our focus remains on the premium, gaming and commercial portions of the market where we see strong growth opportunities and expect to continue gaining overall client revenue share.
The computing and graphics segment of the company's PC sales increased on an annual basis and was 8% higher than the December quarter. The increase was driven by central processors and graphic processor sales, and the average sales price for Ryzen processors rose during the quarter.
The cloud server sales in the Embedded, Enterprise, and Semi-custom segment increased by 86 percent. The rise was driven by higher server processor sales as well as semi-custom sales, which are the chips that go into the heart of game consoles.
Su said that the semi-custom business grew by double-digits on a year-over-year basis due to consumer demand for the Playstation 5, Xbox One, and Valve.
Su said that sales for this game console generation continue to surpass all prior generations, and that they expect a record year for their semi-custom business in 2022.
After a big increase in sales and gross margin in 2021, the stock of the company has plummeted. Increased inflation risk is prompting investors to shy away from Semiconductor stocks.
Last week, Intel gave a disappointing forecast for the June quarter, citing weak PC demand and macroeconomic challenges.
The acquisition of Xilinx was completed in February. The $35 billion price tag was originally announced in 2020. The company said that its results included six weeks of revenue from the deal, and that revenue would have only increased by 45% if not for the sale of the company.
During the quarter, the company bought back $1.9 billion of its stock.
All Rights Reserved © 2024
