AMDThe company reported its third quarter earnings on Tuesday after the bell rang. Earnings and revenue beat analysts’ expectations. It also provided a solid forecast for the next quarter.

In extended trading, the stock rose 1%

The following is a comparison of Refinitiv consensus estimates regarding the quarter that ended on Oct. 2.

• EPSAdjusted: $0.73 vs $0.67 anticipated, an increase of 16% year over year.
• RevenueThe expected $4.12 trillion is higher than the $4.31 billion. This 54% increase year-over-year has been reflected in $4.31 billion.

AMD forecasts that $4.5 Billion in fourth-quarter sales will be achieved, surpassing analyst predictions of approximately $4.25 Billion. AMD forecasts a 39% increase in annual growth for the fourth quarter.

AMD, with its central processors & graphics processors that power servers, PCs and consoles has seen the greatest growth in electronics sales. The AMD computing and graphics segment saw an 44% increase in sales to $2.4Billion, up from the year before.

Although the PC market is now slower than it was a year ago, when everyone needed computers for work and learning from home around the globe, AMD stated that its chips are selling at higher prices because customers choose more powerful processors.

AMD reported server and console chips sales for its Embedded and Enterprise segments. AMD’s $1.9 Billion in revenue in this crucial category was up 69% from the year before, driven by Epyc servers chips and increased “semicustom” sales. These are semiconductors that it sells directly to gaming console makers.

AMD has been able to surpass Epyc processors in the market for server hardware, and is now competing with giants such Microsoft and Google. buy its chipsCloud services. AMD CEO Lisa Su stated in a statistic that data center sales have doubled over the past year.

Game consoles like the new Microsoft Xbox and Sony Playstation 5 models are still in great demand. They sell quickly so it is difficult to find them. In stores, it is difficult to find AMD’s central and graphics processors.

AMD stated that “Demand for Microsoft consoles and Sony games remains strong.”

AMD is an entirely fabless chip maker. The company designs and manufactures the semiconductors it makes and partners with foundries like GlobalFoundries and TSMC. Su was appointed CEO of AMD in September. saidIn 2022, she anticipates that there will be a less severe shortage of chip chips.

AMD maintains its cost control efforts and increases its profitability. The gross margin for the fourth quarter was reported at 48%. This is an increase of 44% from last year. In the fourth quarter, it forecasts gross margins of 49.5%. AMD earned $893 million in net income during the quarter.

AMD’s plans to purchase Xilinix for $35 billion was announced last October. This deal would allow the company to be more competitive with Intel in data center chips market. AMD claimed that the deal would close before the end 2022.

AMD claimed that it purchased shares worth $750 million during quarter. AMD shares are up more than 30% in the past year.