Advanced Micro Devices (AMD) raised its annual revenue forecast, betting on demand for its chips used in data centers and personal computers.
AMD CEO Lisa Su said the company has good visibility into being able to secure additional chips from its manufacturing partners.
“The entire semiconductor supply chain is very, very tight,” she told analysts on a conference call. “That being said, we’ve been working very closely with our supply chain partners. We have seen improvements that have led to the improved full year guide.”
AMD has been prying away central processor chip market share from Intel, whose manufacturing operations have fallen behind contract factories used by AMD, such as Taiwan Semiconductor Manufacturing.
AMD has also benefited from a surge in demand for its graphics chips from gamers who have spent more time playing and upgrading their equipment during the COVID-19 pandemic.
AMD said it expected 2021 revenue to rise 50 percent from a year earlier, implying a figure of $14.64 billion, compared with its previous forecast of a 39 percent jump.
Revenue in the first quarter soared 93 percent to $3.45 billion, thanks in part to higher average selling prices for its chips.
“We’re seeing traction in the premium ultrathin, gaming and commercial notebook markets,” Lisa Su said.
Sales in AMD’s computing and graphics business, which includes graphics and central processor chips for personal computers, rose 46 percent to $2.10 billion.
Its enterprise, embedded and semi-custom segment, the unit that houses data center chips, posted an almost four-fold jump in sales to $1.35 billion.