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AMD predicted second-quarter sales on Tuesday of roughly $6.5 billion, compared with an average analyst estimate of $6.03 billion. That helped the shares up as much as 8.3% in late trading.
The outlook helped allay concerns that the chip market is slowing — and signaled that AMD is making further gains on Intel Corp. The company, which for years lagged far behind Intel in computer processors, is on pace to end 2022 with almost four times as much revenue as in 2019. New products and better execution have helped AMD win over customers who were once skeptical about its capabilities.
AMD’s outlook contrasts with a recent forecast from Intel, which was hurt by an accumulation of inventory at some of its PC customers. The return of Covid-related lockdowns in parts of China also has squeezed the supply of components needed to complete devices, Intel said. Other chipmakers, such as Texas Instruments Inc., have said those disruptions are hurting growth as well.
AMD’s forecast includes a boost from its acquisition of Xilinx Inc., a deal it completed in the first quarter.
“Each of our businesses grew by a significant double-digit percentage year-over-year,” AMD Chief Executive Officer Lisa Su said in a statement. Growth of the existing business and the Xilinx acquisition have both contributed to stronger full-year expectations, she said.
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