(Bloomberg) – Advanced Micro Devices Inc. has made strong predictions that the company will win orders from larger competitors Intel Corp. in the lucrative server chip market. AMD shares rose more than 9% in extended trading. Third-quarter revenue will be about $ 2.55 billion, California-based AMD Santa Clara said on Tuesday. This compares with an average analyst estimate of $ 2.3 billion, according to data collected by Bloomberg.
The company also raised its full-year sales forecast, and second-quarter results exceeded Wall Street expectations for sales of Epyc server chips and Ryzen PC processors. After decades of lagging behind Intel, AMD has caught up in recent years with the help of progress made by Taiwan’s semiconductor manufacturing company Co., Taiwan. Intel, meanwhile, is experiencing a crisis, saying its new manufacturing process is a year behind. It hit Intel shares, and AMD shares rose, hoping their chips would perform better than Intel.
Under Deputy CEO Lisa Su, AMD changed its products and returned from what analysts said was the insolvency threshold. Investors want the company to justify its rapidly growing valuation that it is becoming more than just a premise for computer manufacturers.
On Tuesday, AMD said it sees that in 2020. Revenue will increase by about 32%, driven by the strength of PC, gaming and data center products. Wall Street expected the company’s sales to grow 25% to $ 8.4 billion this year. Anyway, that’s still about half of what Intel ordered in one quarter.
AMD said it plans to divide its double-digit share of the server market by the middle of this year. That would be more than less than 1% before 2017. Introducing new products. Server computers are the backbone of corporate networks and data centers that manage the Internet. Server chips can be sold for thousands of dollars each.
AMD reported second-quarter net income of $ 157 million. USD or 13 cents per share, compared to $ 35 million. USD or 3 cents in the same period a year ago. Revenue rose 26% to $ 1.93 billion. Profits, excluding some items, were 18 cents. Analysts have estimated sales of 16 cents to be $ 1.86 billion.
(Updates with AMD parts in the first paragraph.)
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