"First-quarter sales will be roughly $9.8 billion, plus or minus $300 million, the company said in a statement Tuesday. Analysts had estimated $9.39 billion on average, but some projections topped $10 billion, according to data compiled by Bloomberg. In a mixed blessing, AMD reported some sales of older chips in China. That added to revenue and signaled that the company is navigating trade restrictions but weighed on profit margins."
"The shares fell as much as 16% to $204.01 in New York on Wednesday, the biggest intraday decline since October 2018. They had been up 13% this year through Tuesday's close. Chief Executive Officer Lisa Su stuck to her usual bullish tone, repeating a prediction that the company's AI revenue will reach the tens of billions of dollars in 2027. She brushed off questions about the possibility of component shortages and said that her company will be able to meet the expected increase in orders."
Advanced Micro Devices forecast first-quarter sales of about $9.8 billion, plus or minus $300 million, below some investor expectations and causing a sharp stock decline. The company recorded fourth-quarter revenue of $10.3 billion, a 34% increase, and profit of $1.53 per share, beating analyst estimates. Data-center revenue grew 39% to $5.38 billion. Sales of older chips in China added to revenue but reduced profit margins. AMD is trailing Nvidia in AI chips but plans a more powerful design in the second half and projects AI revenue reaching the tens of billions by 2027. Management expects to increase supply with partners.
Read at www.mercurynews.com
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