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Company News

AMD forecast fourth-quarter sales above estimates after Xilinx deal

FILE PHOTO: Lisa Su, president and CEO of AMD, gives a keynote address during the 2019 CES in Las Vegas, Nevada, U.S., January 9, 2019. REUTERS/Steve Marcus

(Reuters) - Advanced Micro Devices Inc AMD.O on Tuesday forecast fourth-quarter revenue above Wall Street expectations after the semiconductor designer announced a $35 billion deal to buy chipmaker Xilinx Inc XLNX.O.

Shares of the company have been trading 4% lower since the announcement of the deal, which is AMD's largest buyout as it battles Intel Corp INTC.O for a bigger share of the lucrative data center chips market.

Once lagging Intel, AMD has been taking market share as its larger rival faces delays in building the smaller, faster 7-nanometer chip technology.

AMD expects current-quarter revenue to be about $3 billion, plus or minus $100 million, compared with analysts’ average estimate of $2.63 billion, according to IBES data from Refinitiv.

Total revenue jumped 56% to $2.80 billion in the third quarter ended Sept. 26, above analysts’ expectations of $2.57 billion.

Reporting by Munsif Vengattil and Stephen Nellis; Editing by Arun Koyyur

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