65 Billion Reasons to Buy AMD Stock
Advanced Micro Devices (NASDAQ: AMD) crushed Wall Street's expectations on May 3 with a solid set of first-quarter 2022 results, driven mainly by the terrific growth of the data center business and its acquisition of chipmaker Xilinx, which was completed in February this year.
AMD reported Q1 revenue of $5.9 billion, a jump of 71% over the prior-year period. The chipmaker's adjusted earnings shot up 117% year over year to $1.13 per share thanks to a nice bump of 660 basis points in the company's non-GAAP gross margin to $1.13 per share. AMD's adjusted operating margin was also up nine percentage points over the prior-year period to 31% last quarter.
Analysts were expecting AMD to earn $0.92 per share on $5.3 billion in revenue, but the robust demand for data center chips helped it easily hammer those forecasts despite the headwinds it was facing going into its quarterly report. Let's take a closer look at how the data center business gave AMD a shot in the arm last quarter, and see how it could play a critical role in the company's growth in the long run.
Source Fool.com
