AMD Sales Forecast Shows New Products Beginning to DeliverBy
Advanced Micro Devices Inc. forecast sales that suggest it’s making progress winning market share in computer processing from Intel Corp.
Second-quarter revenue will be about $1.725 billion, plus or minus $50 million, the Santa Clara, California-based company said Tuesday in a statement. That compares with an average analyst estimate of $1.58 billion, according to data compiled by Bloomberg.
AMD spent last year introducing new designs for laptop, desktop and server computers and has begun offering improved updates this year. Chief Executive Officer Lisa Su now needs to back up AMD’s claims that they are a leap forward in performance with earnings numbers that demonstrate computer makers and buyers agree and are switching orders away from Intel.
AMD’s shares jumped more than 8 percent in extended training. The stock closed at $9.71 in New York, leaving it down 5.5 percent this year.
First-quarter net income was $81 million, or 8 cents a share, compared with a loss a year earlier. Sales rose 40 percent to $1.65 billion.
AMD is also the second-largest maker of graphics processors for add-in cards for PCs used by gamers, behind Nvidia Corp. That market has been boosted sporadically by sales related to cryptocurrency mining. Graphics chips are good at the kind of processing needed for such activity.
Like Intel, AMD is dealing with a market that’s more than 100 million units down from its peak in 2011 but is no longer declining rapidly. Worldwide PC deliveries were unchanged in the first three months of the year compared with a year earlier, market analyst IDC said in a report April 11.