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AMD forecasts current-quarter sales above estimates

Credit: REUTERS/STEVE MARCUS

Advanced Micro Devices Inc on Tuesday raised its full-year revenue forecast and forecast current quarter sales above Wall Street expectations, driven by a surge in chip demand from data-center operators and PC makers scrambling to meet coronavirus-induced remote work needs.

Adds unit sales, estimates

July 28 (Reuters) - Advanced Micro Devices Inc AMD.O on Tuesday raised its full-year revenue forecast and forecast current quarter sales above Wall Street expectations, driven by a surge in chip demand from data-center operators and PC makers scrambling to meet coronavirus-induced remote work needs.

The chipmaker's shares were up 8% in extended trading.

Samsung Electronics Co Ltd 005930.KS, Intel Corp INTC.O and Texas Instruments Inc TXN.O have all pointed to the lift to chipmakers' results as firms invested to fortify their IT infrastructure to help employees work remotely due to the COVID-19 pandemic.

Revenue from AMD's computing and graphics segment, which includes graphic chip sales to data centers, rose 45% to $1.37 billion, beating analysts' estimate of $1.36 billion, according to research firm FactSet.

AMD now expects 2020 revenue to grow by about 32%, driven by strength in PC, gaming and data center products.

It expects third-quarter revenue at about $2.55 billion, plus or minus $100 million, compared to analysts' average estimate of $2.32 billion, according to IBES data from Refinitiv.

(Reporting by Munsif Vengattil in Bengaluru and Stephen Nellis in San Francisco; Editing by Sriraj Kalluvila, Maju Samuel and Shailesh Kuber)

((munsif.vengattil@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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