Advanced Micro Devices Inc. (NASDAQ:AMD) is trading higher Wednesday after the company announced better-than-expected fourth-quarter financial results and issued guidance above estimates.
AMD reported quarterly earnings of 92 cents per share, which beat the estimate of 76 cents. The company reported quarterly revenue of $4.83 billion, which beat the estimate of $4.52 billion, representing an increase of 49% year-over-year.
"We expect another year of significant growth in 2022 as we ramp our current portfolio and launch our next generation of PC, gaming and data center products," said CEO Lisa Su.
AMD expects first-quarter revenue to be between $4.9 billion and $5.1 billion versus the estimate of $4.32 billion. The company expects full-year 2022 revenue to total approximately $21.5 billion versus the estimate of $19.27 billion.
Su continued, "Each of our businesses performed extremely well, with data center revenue doubling year-over-year driven by the growing adoption of AMD EPYC processors across cloud and enterprise customers "
According to AMD, this growth is particularly evident in its Computing & Graphics and Enterprise, Embedded & Semi-Custom (EES) segments. In particular, the company’s EES segment saw its revenue skyrocket 75% year-over-year, totaling $2.2 billion.
Keybanc analyst John Vinh maintained AMD with an Overweight rating and raised the price target from $155 to $165. Rosenblatt analyst Hans Mosesmann maintained AMD with a Buy rating and raised the price target from $180 to $200.
AMD has traded as low as $72.50 and as high as $164.45 over a 52-week period.
Shares shot higher $9.08, or 7.8%, to $125.86.
