AMD sees full-year, current-quarter revenue above estimates

(Reuters) – Advanced Micro Devices forecast current-quarter and full-year revenue above analysts’ estimates as a coronavirus-led shift to working and playing from home drives demand for its chips used in PCs, data centers and gaming consoles.

The company shares, which doubled last year as its offerings for PCs and data centers grabbed market share from its top rival Intel Corp, were up 1.3% in extended trading on Tuesday.

AMD forecast for full-year 2021 implies sales of $13.37 billion, beating analysts’ estimates of $12.28 billion, according to Refinitiv data.

AMD has been prying away central processor market share from Intel, whose manufacturing operations have stumbled in recent years while contract factories used by AMD such as Taiwan Semiconductor Manufacturing Co grabbed a lead in making faster chips. AMD’s graphics chips have also seen a surge in demand from cryptocurrency miners.

With the $35 billion buyout deal for chipmaker Xilinx Inc in October, AMD aimed to bolster its data center chip business, a market where it competes with Intel and Nvidia. The deal is expected to close by the end of this year.

The company projected first-quarter revenue to be about $3.2 billion, plus or minus $100 million, compared to analysts’ average estimate of $2.74 billion, according to IBES data from Refinitiv.

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