 "AMD revenue beats estimates on data center, server growth")
(Reuters) - Advanced Micro Devices Inc reported better-than-expected quarterly revenue on Tuesday, as it sold more chips for data centers and servers, sending its shares up 6 percent in after-hours trading.
The results underscore AMD’s success in bolstering data center and server sales with new launches in the Ryzen and EPYC line of chips for desktops and servers.
Larger rival Intel Corp last week reported a drop in first-quarter data center sales as customers worked through stockpiles of chips bought last year.
AMD said on Tuesday it expects revenue of about $1.52 billion, plus or minus $50 million, in the second quarter ending June. Analysts on average were expecting $1.52 billion.
The company’s revenue in the first quarter fell 22.7 percent to $1.27 billion, but beat analysts’ expectations of $1.26 billion, according to IBES data from Refinitiv.
Net income fell to $16 million, or $0.01 per share in the three months ended March 30, from $81 million, or $0.08 per share a year earlier.
Excluding items, the company earned $0.06 per share, above Wall Street expectations of $0.05 per share.
(Reporting by Shariq Khan and Sayanti Chakraborty in Bengaluru; Editing by Maju Samuel)
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