Chip makers are struggling, but AMD just posted a very impressive quarter, writes tpoletti.
Advanced Micro Devices Inc. rode the success of new chips to its best quarterly results in years on Tuesday, making it the shining star of a semiconductor industry struggling through a downturn.
Personal computers also benefited from AMD’s new architecture, developed under Su’s stewardship of a company that was largely known for big ambitions that led to failed runs at Intel Corp. INTC, -0.74% before she arrived. Sales in the computing and graphics business jumped 36% year-over-year to the highest total in that segment since 2011, as the PC market gets a boost from the coming death of Microsoft Corp.’s MSFT, -0.94% Windows 7 operating system.
The fears appeared to be focused on AMD’s holiday-season guidance and its record-high gross margins, which analysts hoped would be even better. AMD’s fourth-quarter forecast calls for sales of $2 billion to $2.15 billion, barely touching the consensus estimate of $2.15 billion, while margins were mentioned more than a dozen times in the question-and-answer session of the conference call.
“You have to look at the mix of the product relative to the total revenue of the company,” said AMD Chief Financial Officer Devinder Kumar.
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