AMD Q1 Earnings, Guidance Steamroll Estimates Amid Across-The-Board Strength

Rosenblatt Securities analyst Hans Mosesmann said ahead of the results, quarterly revenues were likely to have been driven by a less seasonal PC and game console market and continued strength in data center EPYC.

AMD's Key Quarterly Developments: In early March, AMD unveiled the AMD Radeon 6700 XT graphics card for 1440p PC gaming experience. It also introduced Ryzen PRO 5000 series mobile processors with Zen 3 architecture.

During the quarter, Xilinx, Inc. XLNX shareholders voted to approved the programmable chipmaker's pending acquisition by AMD. The companies expect the transaction to close by the end of 2021, subject to other customary closing conditions, including the receipt of required regulatory approvals.

AMD's Outlook: AMD guided to second-quarter revenues of about $3.6 billion, plus or minus $100 million, representing 86% year-over-year growth and a 4% quarter-over-quarter increase. Analysts, on average, estimate revenues of $3.29 billion.

The quarter-over-quarter growth, according to the company, is premised on Datacenter and gaming growth.

Non-GAAP gross margin for the quarter is estimated at 47%.

The company raised its full-year revenue growth guidance from 37% previously to 50%, while the Street is modeling 39% growth.

AMD's Stock: AMD started 2021 strongly, carrying over the momentum that was seen for much of 2020.

From a high of $99.23 on Jan. 11, the stock retreated and the weakness was exacerbated by the sector-wide sell-off in the tech space seen in early March.

From a low of $73.96 on March 8, the stock has recovered but is still trading down about 7% for the year-to-date period.

Reacting to the results, AMD shares were rallying 3.26% to $87.99 in after-hours trading.

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