AMD earnings Q4 2021

Lisa Su, president and chief executive officer of Advanced Micro Devices (AMD), holds a 3rd generation Ryzen desktop processor while speaking during a keynote session at the 2019 Consumer Electronics Show (CES) in Las Vegas, Jan. 9, 2019.

David Paul Morris | Bloomberg | Getty Images

AMD reported fourth-quarter earnings after the bell on Tuesday, beating analyst estimates for earnings and sales, and delivered a very strong sales forecast for 2022.

AMD stock rose over 9% in extended trading.

Here’s how the chipmaker did versus per Refinitiv consensus estimates in the quarter ending Dec. 25:

  • EPS: $ 0.92, adjusted, versus $ 0.76 estimated, up 26% year-over-year
  • Revenue: $ 4.83 billion, versus $ 4.53 billion estimated, up 49% year-over-year

AMD said it expected $ 21.5 billion in sales in 2022, ahead of analyst expectations of $ 19.26 billion. That would be a 31% increase over 2021’s sales. AMD said it expected $ 5 billion in sales in the first quarter, driven by server and PC processor sales.

In 2021, AMD’s sales increased 68%, and the company’s gross margin increased to 48%, up over 3 percentage points from last year.

AMD has been riding a surge in PC and electronics sales over the past two years and has recently released new chips with significant performance gains that are allowing the processor maker to challenge Intel, which is the biggest supplier of PC chips.

Those sales are reported in AMD’s computing and graphics segment, which reported 32% growth to $ 2.6 billion in revenue. AMD said that sales were driven by Ryzen processors and Radeon graphics processor sales, and noted the average selling price for both product lines was increasing.

AMD also sells chips for cloud servers and game consoles, which are reported in the Embedded, Enterprise, and Semi-custom segment. That segment shot up 75% to $ 2.2 billion, powered by server chip and game console sales, AMD said.

AMD previously announced its plans to buy Xilinix in a deal worth $ 35 billion that would give the company more firepower to compete with Intel in the data center chip market. The company said on Tuesday that it had received approval from Chinese regulatory bodies for the transaction, but the acquisition has not yet closed.

AMD stock was down 22% year-to-date when markets closed on Tuesday.

Correction: This story has been updated with the correct analyst expectations for 2022 guidance.

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