Processor maker Advanced Micro Devices(AMD) has registered a record quarterly growth in Data Center revenue which has soared its shares by 10 per cent.
While investors of the tech giant were expecting a sluggish growth after a slowdown in China owing to disrupted trade relations with the United States. The shares of Micron Technology and Nvidia also jumped by 2 per cent, while its arch-rival and market leader Intel also witnessed a marginal share growth.
The revenue of the company for the fourth quarter of 2018 touched $1.42 billion as against the expected figure of $1.42 billion by analysts. The net income of the firm for the quarter stood at $38 million. AMD is now betting big on its new graphics and data centre chips to push revenue growth in the current year.
The company’s gross margin for the fourth quarter jumped to 38 per cent from 34 per cent a year ago.
The company’s Chief Executive Officer Lisa Su announced that AMD will roll out 30 per cent more Ryzen systems in the current year as compared to 2018, while the CPU arm of the business is expected to witness a faster growth as compared to GPU.
A slump in the values of cryptocurrencies in the year 2018 impacted chipmakers including AMD in the previous quarter which resulted in huge piles of inventories.
A crash in prices of cryptocurrencies late in 2018 hit chipmakers including AMD in the prior quarter and led to a pile of inventories that proved difficult to clear.