AMD Gains After Laying Out Plans For Growth In Servers

By Jeremy C. Owens Markets MarketWatch Pulse

Advanced Micro Devices Inc. Chief Executive Lisa Su laid out the chip maker's plans and expectations for the coming years at an event Tuesday afternoon, sending shares higher in late trading after big gains in the regular session. At AMD's Financial Analyst Day presentation, Su showed off AMD's coming "Epyc" CPU offering and Radeon GPU product for data-center servers. These new offerings, which will compete with Intel Corp. and Nvidia Corp. products for data-center servers, are expected to launch in the current quarter. Su said AMD expects revenue to grow by double-digit percentages on an annual basis over the next few years, and said AMD is targeting gross margins of 40%-44% and annual adjusted earnings of greater than 75 cents a share. AMD reported non-GAAP gross margin of 31% in the 2016 fiscal year, with a non-GAAP loss of 14 cents a share. AMD shares, which jumped 11.7% to $12.75 in the regular session, added another 3% in after-hours trading to top $13.

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