AMD’s upbeat 2018 start: Strong results ahead of new HQ opening

It’s a good time to be Advanced Micro Devices. And not just because the longtime Silicon Valley semiconductor company will open the doors on its new, Santa Clara headquarters on Feb. 7.

AMD shares climbed more than 5 percent Wednesday, to $13.55, as Wall Street reacted positively to the chipmaker’s upbeat fourth-quarter report and first-quarter outlook. Late Tuesday, AMD said that for the quarter ending Dec. 30, it earned $88 million, excluding one-time itmes, or 8 cents a share, on $1.48 billion in revenue. Those results topped the estimates of Wall Street analysts, who had forecast AMD to earn 5 cents a share, on sales of $1.4 billion.

During the same period a year ago, AMD turned in a loss of a penny a share on $1.11 billion in revenue.

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AMD also said that for the first quarter of 2018, it expects to report sales in a range of $1.5 billion to $1.56 billion. Much of AMD’s strength is coming from new products such as its Ryzen and Radeon processors, and inroads the company has made in the markets for gaming and cryptocurrency mining, which depend heavily on AMD’s graphics chips.

The company said sales from its computing and graphics processors reached $958 million in the fourth quarter, a 60 percent increase over the same period a year ago.

With Wednesday’s stock-market gains, AMD’s shares have risen 32 percent since the start of the year.

Photo: AMD Chief Executive Lisa Su speaks at a company event in San Francisco on Aug. 17, 2016. AMD shares climbed 5 percent Wednesday after the chipmaker reported strong fourth-quarter results and gave an upbeat first-quarter revenue outlook. (Paul Sakuma Photography)

 

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