AMD's Q1 revenue surges 71% to more than $5bn for the first time

US chipmaker Advanced Micro Devices reported a record fiscal first quarter that saw revenue eclipse $5 billion for the first time, brushing off industry challenges and analyst estimates.

Revenue surged 71 per cent year-on-year to around $5.9bn and increased 22 per cent from the fourth quarter of 2021, while gross profit jumped 78 per cent to more than $2.8bn, the California-based company said in a statement. Earnings per share were $1.13, beating the estimated $0.91 and up 117 per cent on an annual basis.

The results include the first six weeks of revenue from Xilinx, another US chipmaker that AMD acquired in February for $35bn. AMD said revenue would have increased by only 55 per cent without the deal.

The company's shares closed up 1.4 per cent to $91.13 at the end of trading on Tuesday. In after-hours trading, the shares gained almost 7 per cent to $97.30.

AMD executives now expect second-quarter revenue to surpass $6.5bn, well ahead of analysts' estimates of around $6.38bn.

“The first quarter marked a significant inflection point in our journey to scale and transform AMD as we delivered record revenue and closed our strategic acquisition of Xilinx,” Lisa Su, chairwoman and chief executive of AMD, said.

"Demand remains strong for our leadership products, with our increased full-year guidance reflecting higher AMD organic growth," she added, noting that each of AMD's businesses grew by a "significant" double-digit percentage year-over-year.

The global semiconductor industry was beset by supply disruptions in 2021 as consumer demand spiked during the Covid-19 pandemic. The sector, however, is poised for a big rebound in 2022, with sales expected to cross $600bn for the first time, according to Allianz unit Euler Hermes. Sales had already hit a record high of $553bn in 2021.

The current shortage, however, is unlikely to be resolved in the near future, the World Economic Forum said, citing logistical and time challenges.

AMD's first-quarter results continued its strong performance after a robust 2021, in which it captured over a quarter of the CPU market, its best ever, according to Mercury Research. Only rival Intel holds a bigger market share.

Ms Su acknowledged that while the PC market is experiencing "some softness", AMD will focus on the premium, gaming and commercial segments of the market, where the company sees "strong growth opportunities".

Operating income in the first quarter was up 44 per cent annually to $951 million, while net income rose 42 per cent to $786m. Both figures, however, were down by about a fifth from the previous quarter.

AMD's shares closed up 1.4 per cent to $91.13 on Tuesday on the Nasdaq. The stock gained almost 7 per cent to $97.30.

Notable salonnières of the Middle East through history

Al Khasan (Okaz, Saudi Arabia)

Tamadir bint Amr Al Harith, known simply as Al Khasan, was a poet from Najd famed for elegies, earning great renown for the eulogy of her brothers Mu’awiyah and Sakhr, both killed in tribal wars. Although not a salonnière, this prestigious 7th century poet fostered a culture of literary criticism and could be found standing in the souq of Okaz and reciting her poetry, publicly pronouncing her views and inviting others to join in the debate on scholarship. She later converted to Islam.

Maryana Marrash (Aleppo)

A poet and writer, Marrash helped revive the tradition of the salon and was an active part of the Nadha movement, or Arab Renaissance. Born to an established family in Aleppo in Ottoman Syria in 1848, Marrash was educated at missionary schools in Aleppo and Beirut at a time when many women did not receive an education. After touring Europe, she began to host salons where writers played chess and cards, competed in the art of poetry, and discussed literature and politics. An accomplished singer and canon player, music and dancing were a part of these evenings.

Princess Nazil Fadil (Cairo)

Princess Nazil Fadil gathered religious, literary and political elite together at her Cairo palace, although she stopped short of inviting women. The princess, a niece of Khedive Ismail, believed that Egypt’s situation could only be solved through education and she donated her own property to help fund the first modern Egyptian University in Cairo.

Mayy Ziyadah (Cairo)

Ziyadah was the first to entertain both men and women at her Cairo salon, founded in 1913. The writer, poet, public speaker and critic, her writing explored language, religious identity, language, nationalism and hierarchy. Born in Nazareth, Palestine, to a Lebanese father and Palestinian mother, her salon was open to different social classes and earned comparisons with souq of where Al Khansa herself once recited.