(Reuters) – Advanced Micro Devices forecast second-quarter revenue above Wall Street expectations on Tuesday, betting on strong demand for its chips used in data centers and personal computers.
Shares of the company rose 3.2% in extended trading.
AMD has been prying away central processor chip market share from Intel, whose manufacturing operations have stumbled in recent years while contract factories used by AMD such as Taiwan Semiconductor Manufacturing Co grabbed a lead in making faster chips.
The company’s graphics chips have also seen a surge in demand from gamers, who have spent more time playing and upgrading their equipment during the COVID-19 pandemic.
The company projected second-quarter revenue to be about $3.6 billion, plus or minus $100 million, compared with analysts’ estimates of $3.29 billion, according to Refinitiv IBES data.
Revenue for the first quarter rose to $3.45 billion, from $1.79 billion a year earlier. Analysts had expected a figure of $3.21 billion.
(Reporting by Chavi Mehta in Bengaluru; Editing by Aditya Soni)
