JHVEPhoto/iStock Editorial via Getty Images
- Advanced Micro Devices (NASDAQ:AMD) got a mild boost on Wall Street, Wednesday, after the chipmaker gave a fourth-quarter revenue forecast that surpassed analysts' prior estimates.
- AMD (AMD) shares were up by almost 2% in the wake of the company saying it expects fourth-quarter sales to be in a range of $4.4 billion to $4.6 billion. Analysts had forecast AMD's (AMD) sales for the last three months of the year to hit $4.25 billion.
- The company's strength is coming from sales of semiconductors for data centers, in particular. On Tuesday, AMD (AMD) Chief Executive Lisa Su said that for its third quarter, the company's data-center chip sales more than doubled from a year ago.
- "We like [AMD's] solid momentum in enterprise servers where AMD has been underrepresented and where comparisons are easier after spending pause during [the] Covid-19 [need to] work from home," said Bank of America analyst Vivek Arya. "[The company's] ability to consistently deliver incremental capacity and sales growth throughout 2021 is a testament to the team's strong execution. Following AMD's report, Arya left his buy rating on the company's stock unchanged, but raised his price target to $150 a share from $135
- Along with AMD's forecast, the company reported a third-quarter profit of 73 cents a share, excluding one-time items, on $4.3 billion in sales. During the same period a year ago, AMD earned 41 cents a share, on revenue of $2.8 billion.
- Additionally, Su said AMD is making "good progress" on its proposed $35 billion acquisition of chipmaker Xilinx (NASDAQ:XLNX).