Advanced Micro Devices (AMD) forecasted better-than-expected revenue for 2Q after 1Q results topped consensus estimates. The chip maker also lifted year-over-year revenue growth expectations for 2021.
AMD’s 1Q adjusted earnings almost doubled to $0.52 per share on a year-over-year basis and came in well ahead of analysts’ expectations of $0.44 per share. Revenue surged 93% to $3.45 billion and surpassed the consensus estimate of $3.21 billion.
The Computing and Graphics segment’s revenue was $2.1 billion, up 46% year-over-year. Additionally, Enterprise, Embedded and Semi-Custom segment revenue more than doubled to $1.35 billion.
For 2Q, the company anticipates total revenue of $3.5 billion to $3.7 billion, which would represent year-over-year growth of 86%. The consensus estimate stands at $3.3 billion.
For 2021, AMD lifted the year-over-year revenue growth expectations to 50% from prior guidance of 37%.
AMD CEO Dr. Lisa Su commented, “Our increased full-year guidance highlights the strong growth we expect across our business based on increasing adoption of our high-performance computing products and expanding customer relationships.” (See Advanced Micro Devices stock analysis on TipRanks)
Following the 1Q results, Oppenheimer analyst Rick Schafer reiterated a Hold rating on AMD stock.
Schafer said, “Mgmt continues to execute well despite tight supply, and AMD’s design win outlook is encouraging. Uncertainty around the market’s competitive response (particularly from INTC) and tight supply curbing upside keep us sidelined.”
The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. That’s based on 9 Buys, 4 Holds, and 1 Sell. The average analyst price target of $107 implies 22.7% upside potential to current levels. Shares have increased 53.5% over the past year.
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on AMD, with 3.3% of investors increasing their exposure to AMD stock over the past 30 days.
Amazon’s AWS Partners With DISH Network
Salesforce Aids Sonos In Digital Transformation
Crocs Pops 11% After 1Q Results Beat Expectations