After the close on May 3, Advanced Micro Devices (AMD) reported first-quarter earnings of $1.13 a share, excluding one-time items. Wall Street analysts had projected earnings of 92 cents a share for the quarter.
Sales rose 71% to $5.9 billion, topping projections of $5.3 billion.
In guidance Advanced Micro Devices predicted second-quarter sales of roughly $6.5 billion. That’s ahead of the average analyst estimate of $6.03 billion. The company also guided analysts to expect annual revenue of $26.3 billion for 2022. That’s well ahead of Wall Street projections for $24.1 billion. And it would be a gain of 60% from 2021.
AMD’s beat was based on the company’s gains in the market for chips that run the servers for the Internet. Some 48% of all new processors installed in these data centers were bought from AMD in March, according to Jefferies & Company
The results pushed shares up 9.10% by the close on May 4.
I added the shares to my Volatility Portfolio on my subscription JubakAM.Com and JugglingWithKnives.Com sites back on November 15, 2021 in an effort to profit from AMD’s gains in the server market and the renewed strength of its challenge to Nvidia (NVDA) in the market for graphics processors used in computer games. That pick was just in time to catch the downturn in tech shares. As of the close on May 4 that position was down 32.77%.
