AMD is expecting a strong Q4 revenue compared to market expectations. It is trying to overcome the global supply chain issues and meet the strong demand for its chips used in data center servers and gaming consoles. It is simultaneously focusing on the sales of its most profitable chips while overcoming the supply crisis.
Lately, the company has gained market share and is ahead of rival Intel with the release of its newest data center chips. It is expecting $4.5 billion in revenue in the current quarter. The average expectation of analysts is $4.25 billion.
The company has pushed up the annual growth forecast from 60 percent to 65 percent with respect to revenue. It reported more than expected sales in the third quarter due to a rise in the computing business and graphics business such as data centers chip sales and graphic chip sales.
According to AMD chief Lisa Su, the data center chips business performed well and the demand for it is strong. Demand for the chips used in the PlayStation of Sony and Xbox of Microsoft is expected to be strong.
Meanwhile, the net income of AMD was $923 in the quarter, an impressive increase from the $390 million in the same quarter of 2021.
AMD has struck deals with Google Cloud, Amazon Web Services, Microsoft Azure and Meta Platforms Inc. Shares of the company have jumped up by about 11 percent in recent days. Investors are confident the data center chips business would rise further this year as is evident from the enhanced market share against rival Intel.
The company is simultaneously focusing on taking a lead against the smaller companies with its chips required for computing and gaming. It is believed a further growth is on the card if the global supply chain issues are solved.