Financial Associated Press, May 4 (Editor Shi Zhengcheng) After hours on Tuesday, the well-known semiconductor company AMD disclosed the results of the first three months of this year, and in the context of external concerns about the weakness of the PC market, the company handed over a financial report that was extremely strong in all aspects. Affected by this news, as of press time, the company rose 6.77% after hours. In this round of adjustment at the beginning of this year, AMD's stock price is close to the end of last year.
Q1 achieved revenue of $5.89 billion (expected $5.52 billion), up 71 percent year-over-year, and the first quarter in the company's history to exceed $5 billion in revenue, according to the company's disclosure. AMD officially completed its acquisition of Xilinx in February this year, so this financial report also includes the $559 million in revenue that Xilinx contributed in the remaining six weeks of Q1 after the completion of the transaction.
(Source: AMD Earnings Report)
Before the release of this round of earnings reports, the general concern was whether the decline in demand would affect chip demand after two years of explosive development of the PC market.
AMD CEO Dr. Su Zifeng acknowledged that this situation exists, but stressed that the company's focus is on the high-end, gaming and commercial parts of the market. The company sees strong growth opportunities and expects to continue to expand its overall revenue share. AMD's Computing and Graphics business unit revenue rose 33% year-over-year and even 8% higher sequentially in the quarter. The company said sales of both CPU and graphics cards rose during the quarter, while the average selling price of Ryzen™s processors also rose.
Enterprise-side, embedded and semi-customized business units, including cloud servers, increased 88% year-over-year to $2.5 billion in revenue for the quarter. In addition to continued strong demand for cloud servers, consumers' enthusiastic pursuit of the PS5, Xbox One, and Steam Deck has also driven "double-digit percentage" growth for semi-custom businesses.
Dr. Su Zifeng said that sales of this generation of game consoles continue to exceed previous generations, and the company expects 2022 to be a record year for semi-customization.
To the market's excitement, AMD has come up with an extremely strong guidance after Intel's performance forecast last week fell short of expectations. The company expects revenue of $6.5 billion in the second quarter, and significantly raised its full-year revenue guidance from $21.5 billion to $26.3 billion.
(Source: Company Financial Report)