The chip group AMD continues to overtake its bigger rival Intel. Data center technology in particular saw strong growth of more than 80 percent in the quarter, while Intel showed a decline. At the same time, AMD’s current quarter sales forecast surpassed analyst expectations on Tuesday.
Overall, AMD’s quarterly revenue rose 70 percent to $6.55 billion, partly due to the purchase of chip specialist Xilinx. According to Heise.de, this is the highest turnover in the company’s history.
For the current quarter, AMD forecast revenue between $6.5 and $6.9 billion, while analysts had expected a good $6.8 billion. The stock lost more than 4 percent in after-hours trading.
83 percent more revenue in the server area
AMD’s data center chip business is up 83 percent to $1.5 billion. At Intel, its corresponding division revenue fell 16 percent to $4.6 billion in the quarter.
In the PC sector, AMD rose a quarter to $2.2 billion, despite the slump in the computer market. Intel was down a quarter to $7.7 billion.The bottom line is that AMD’s quarterly profit fell 37 percent to $447 million, partly due to write-downs related to the Xilinx acquisition.
Source: Krone
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