- AMD reported their fourth quarter earnings on Tuesday after the final bell
- AMD stated that they expected around $21.5 billion in sales throughout 2022, much higher than analysts’ initial expectations of $19.26 billion

AMD is currently soaring in post-market due to the amazing earnings and revenue report released for the fourth quarter on Tuesday. Analyst estimates were outdone for both earnings and sales, and they also touched on the strong forecast for AMD sales throughout 2022.
The stock is 9.75% up aftermarket, it seems as if investors are flocking back into buying AMD stock after the recent dip in the past week or two.
AMD also touched on the fact that they were expecting around $21.5 billion in sales in 2022, which is much higher than the initial estimate of $19.26 billion given by analysts. When compared to the sales AMD had in 2021, this is a whopping 31% increase.
Year of Growth for AMD
2021 was an amazing year for them and the company saw its sales skyrocket 68%, with the gross margin increasing upwards to 50% (giving them a total uptick of 5 percentage points from the previous year). Many would argue that AMD is finally able to challenge the “almighty chip maker” known as Intel at this point in time.
The bulk of sales reported from AMD’s computing and graphics portion pertained to either Ryzen drivers or Radeon graphics processors, both of which are hot products on the computer part market. They reported a 32% growth and reached a total of $2.6 billion in revenue. The average selling price for products on either line was increasing gradually, and it’s something to take note of.
They had also talked about purchasing the company Xilinix in a $35 billion deal that would give them more “power” to compete with companies like Intel in the data center chip/processor market. The company said that they had already received approval for the merger from Chinese regulatory teams and that the transaction was currently pending.
Although it’s back on an upswing, it’s important to remember that this company is still down 22% when looking at year-to-date pricing. Could this be the “dip before the rip” that I see so many people talking about?
Like this article? Be sure to follow my blog for more!
Do you need something written? Feel free to contact me here