AMD's Q1 revenue surges 71% to more than $5bn for the first time

US chipmaker Advanced Micro Devices reported a record fiscal first quarter that saw revenue eclipse $5 billion for the first time, brushing off industry challenges and analyst estimates. Revenue surged 71 per cent year-on-year to around $5.9bn and increased 22 per cent from the fourth quarter of 2021, while gross profit jumped 78 per cent to more than $2.8bn, the California -based company said in a statement . Earnings per share were $1.13, beating the estimated $0.91 and up 117 per cent on an annual basis. The results include the first six weeks of revenue from Xilinx, another US chipmaker that AMD acquired in February for $35bn. AMD said revenue would have increased by only 55 per cent without the deal. The company's shares closed up 1.4 per cent to $91.13 at the end of trading on Tuesday. In after-hours trading, the shares gained almost 7 per cent to $97.30. AMD executives now expect second-quarter revenue to surpass $6.5bn, well ahead of analysts' estimates of around $6.38bn. “The first quarter marked a significant inflection point in our journey to scale and transform AMD as we delivered record revenue and closed our strategic acquisition of Xilinx,” Lisa Su, chairwoman and chief executive of AMD, said. "Demand remains strong for our leadership products, with our increased full-year guidance reflecting higher AMD organic growth," she added, noting that each of AMD's businesses grew by a "significant" double-digit percentage year-over-year. The global semiconductor industry was beset by supply disruptions in 2021 as consumer demand spiked during the Covid-19 pandemic. The sector, however, is poised for a big rebound in 2022, with sales expected to cross $600bn for the first time , according to Allianz unit Euler Hermes. Sales had already hit a record high of $553bn in 2021. The current shortage, however, is unlikely to be resolved in the near future, the World Economic Forum said, citing logistical and time challenges . AMD's first-quarter results continued its strong performance after a robust 2021, in which it captured over a quarter of the CPU market, its best ever, according to Mercury Research. Only rival Intel holds a bigger market share. Ms Su acknowledged that while the PC market is experiencing "some softness", AMD will focus on the premium, gaming and commercial segments of the market, where the company sees "strong growth opportunities". Operating income in the first quarter was up 44 per cent annually to $951 million, while net income rose 42 per cent to $786m. Both figures, however, were down by about a fifth from the previous quarter. AMD's shares closed up 1.4 per cent to $91.13 on Tuesday on the Nasdaq. The stock gained almost 7 per cent to $97.30.

AMD's Q1 revenue surges 71% to more than $5bn for the first time

Record quarter boosted by the PC industry, which the company believes will continue to grow in 2022