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AMD shares hit a fresh record high on Wednesday, company projects robust fourth-quarter revenue on strong demand for chips

Advanced Micro Devices Inc (AMD) forecast earlier this week higher fourth-quarter revenue than market expectations, as it expects to cope with supply chain issues and to satisfy robust demand for chips used in gaming consoles and data center servers.

AMD said it expected its revenue to come in at $4.5 billion plus or minus $100 million during the fourth quarter, which compares with a consensus of analyst estimates of $4.25 billion.

The tech company also revised up its annual revenue growth forecast from 60% to 65% after reporting better-than-expected third-quarter sales.

AMD’s net income rose to $923 million ($0.75 per share) during the latest quarter from $390 million ($0.32 per share) a year ago.

Third-quarter results were underpinned by a 44% growth in AMD’s computing and graphics business, it said.

“The data center business is very strong and there is strong demand,” Lisa Su, AMD’s Chief Executive Officer, was quoted as saying by Reuters.

According to Su, the PC market could “flatten from 2021 to 2022,” but still, demand for chips used in Microsoft Corp’s Xbox gaming consoles and Sony Corp’s PlayStation consoles remains robust.

The shares of Advanced Micro Devices Inc closed lower for the second time in the past ten trading sessions on NASDAQ on Wednesday. It has also been the steepest single-session loss since October 8th. The stock went down 0.53% ($0.65) to $122.28, after touching an intraday high at $128.08. The latter has been a fresh all-time high for the stock.

The shares of Advanced Micro Devices Inc have surged 33.33% so far in 2021 compared with a 21.18% gain for the benchmark index, S&P 500 (SPX).

In 2020, AMD Inc’s stock went up 99.98%, thus, it again outperformed the S&P 500, which registered a 16.26% gain.

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