Superior Micro Units Inc raised its annual income forecast on Tuesday, betting on sturdy demand for its chips utilized in knowledge facilities and private computer systems as its chief government mentioned she was assured the corporate may supply the chips regardless of a worldwide provide scarcity.
The chip designer’s shares rose about 4% in prolonged buying and selling after it additionally reported better-than-expected outcomes for the primary quarter.
CEO Lisa Su mentioned AMD has “good visibility” into having the ability to safe extra chips from its manufacturing companions.
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“All the semiconductor provide chain could be very, very tight,” she informed analysts on a convention name. “That being mentioned, we have been working very intently with our provide chain companions. We’ve seen enhancements which have led to the improved full-year information.”
AMD has been prying away central processor chip market share from Intel Corp, whose manufacturing operations have fallen behind contract factories utilized by AMD, reminiscent of Taiwan Semiconductor Manufacturing Co.
It has additionally benefited from a surge in demand for its graphics chips from players who’ve spent extra time taking part in and upgrading their tools through the COVID-19 pandemic.
The corporate mentioned it now anticipated 2021 income to rise 50% from a 12 months earlier, implying a determine of $14.64 billion, in contrast with its earlier forecast of a 39% soar.
Income within the first quarter soared 93% to $3.45 billion, beating a Refinitiv IBES estimate of $3.21 billion, thanks partly to greater common promoting costs for its chips.
Learn extra: TSMC sees chip scarcity lasting into 2022, books stable revenue
“We really feel excellent about our progress, significantly in notebooks,” Su mentioned. “We’re seeing traction within the premium ultrathin, gaming and industrial” pocket book markets.
Gross sales in AMD’s computing and graphics enterprise, which incorporates graphics and central processor chips for private computer systems, rose 46% to $2.10 billion.
Its enterprise, embedded and semi-custom phase, the unit that homes knowledge middle chips, posted an nearly four-fold soar in gross sales to $1.35 billion.
Excluding objects, the corporate earned 52 cents per share, exceeding expectations of 44 cents per share.