AMD Sales Up 40%, Outlook Hits Shares
Component manufacturer, AMD, has reported a 40% YoY increase in sales for the March quarter, with a weaker outlook sending shares down ~4% in extended trading.
Results were buoyed by computing and graphics segments, which included its recently updated Ryzen processors and Radeon graphics cards.
The company expects weaker consumer demand in the second half of 2020, however, is forecasting yearly revenue to climb 25%.
Chief Executive, Dr Lisa Su, has confirmed AMD’s next-generation processors and graphics cards are still scheduled to make way later this year.
Apple and AMD’s relationship also appears in good stead, with its components featured within new laptops and desktops (e.g. Mac Pro).
Sales for the March quarter notched US$1.79 billion, beating most analyst expectations.
“We executed well in the first quarter, navigating the challenging environment to deliver 40% year-over-year revenue growth and significant gross margin expansion driven by our Ryzen and Epyc processors,” said Su in a press release.
“While we expect some uncertainty in the near-term demand environment, our financial foundation is solid and our strong product portfolio positions us well across a diverse set of resilient end markets.”
Commentators claim AMD has benefited from increased PC sales amid a rise in work-from-home (WFH) staffers during the COVID19 pandemic.
Some market watchers has expected a further increase in AMD numbers prompt by the WFH boom.