AMD stock jumped 2% on Friday after Advanced Micro Devices Inc. (NASDAQ:AMD) indicated that it is maintaining its revenue guidance for this quarter even as the coronavirus continues to spread. The company indicated that its sales are likely to be around the lower end of its forecast range because of the COVID-19 outbreak.
AMD Expects Revenue of Around $1.8 Billion in the Current Quarter
While speaking at an investor event on Thursday, AMD CEO Lisa Su indicated that the company will achieve a 20% growth in revenue in the next four years as it becomes profitable and attains its goal. Su said that gross margin will rise by over 50% over that period.
For the current quarter, the company has projected its revenue to be around $1.8 billion, with an allowance of plus or minus $50 million. Although demand from consumers in China has declined because of the coronavirus outbreak, the company indicated that orders from elsewhere were in line with expectations, boosted by demand for data center chips. The CEO also indicated that the company is holding onto its prediction of sales growth by 28% to 30% this year.
AMD stock is now up by 2% at $49.06.
AMD Betting on Recovery of Supply Chain
Despite the impact that the coronavirus outbreak has caused, the CEO indicated that there are signs that the supply chain is about to normalize in China. The country extended the Lunar New Year holiday due to the outbreak of the virus. Su indicated that besides China, the supply chain was equally recovering, with suppliers in Malaysia and Taiwan almost back to full production.
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Su called on investors to remain optimistic and have faith in the company, as they have shown in the last five years since she took the top job. During her tenure, the company has managed to take on Intel Corp (NASDAQ:INTC) in the chip market with only a fraction of Intel’s resources. However, currently, like most chipmakers, AMD is also facing the demand and supply disruptions that have resulted from the coronavirus pandemic.
AMD stock is one of the biggest gainers in the past year, with a jump of 120%.
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