AMD forecast 2022 profits earlier mentioned expectations, driving its shares up as substantially as 11 percent in following-several hours investing, as stellar need for its chips used in data centre servers is anticipated to continue to generate progress.

AMD’s sturdy forecast also boosted shares of chipmakers Nvidia and Qualcomm.

The chip designer surpassed profits estimates in the fourth quarter also with document quarterly profits as it offered far more greater-priced chips to soften the hit from the source crunch ailing the business.

“Every single of our companies executed very very well, with info middle earnings doubling year-in excess of-calendar year,” CEO Lisa Su said in a assertion.

AMD has dived deeper into the data center current market to capitalize on booming cloud adoption, while its agile product of outsourced manufacturing has assisted the firm pry absent industry share from rival Intel.

“AMD is plainly gaining industry share in both equally the Personal computer client and the server/datacenter stop-marketplaces from Intel,” explained Kinngai Chan, managing director and senior investigate analyst for semiconductors at Summit Insights Team.

He additional that AMD’s sector share in each individuals markets is even now reasonably low.

Although shares of several chip companies rose in just after-hrs trading, Intel fell slightly.

AMD has built a selection of new launches with sizeable functionality gains, including updates to its graphics processor lineup applied for cloud and superior-excellent gaming, building a obstacle for Intel.

For the complete calendar year, AMD forecast revenue of about US$21.5 billion (A$30.1 billion), compared with analysts’ ordinary estimate of US$19.27 billion (A$27 billion), according to IBES information from Refinitiv.

The California-centered business noted altered fourth-quarter revenue of US$4.83 billion, compared with estimates of US$4.53 billion.

Net profits fell to US$974 million from US$1.78 billion past calendar year. Excluding merchandise, AMD attained 92 US cents for each share, surpassing estimates of 76 US cents.