Advanced Micro Devices Inc. showed investors at its big yearly analyst meeting Thursday that it’s not resting on its laurels that made it the best performer in the S&P 500 last year, and presented a convincing case to continue to trust Chief Executive Lisa Su.
, which counts semiconductor giant Intel Corp.
as its fiercest competitor, set some aggressive goals and laid out product road-map plans, discussing new chip architectures that will drive its plans for a continued strong growth rate.
But the biggest surprise was that the company does not expect to see much of a revenue hit from the coronavirus outbreak, at least for now. Executives maintained its previous forecast for first-quarter revenue of $1.8 billion, plus or minus $50 million, and admitted that sales will probably come in at the low end of its guidance range. Its shares jumped as high as 6% in after-hours trading. Many companies in tech are seeing bigger hits to revenue due to slowing demand from China.
“Our best visibility is that the impact in the first quarter will be modest,” Su told analysts. She also noted that the company has seen some decline in demand in China, but that it has also seen more demand on the infrastructure side. “There is a lot of puts and takes,” she said.
Su told investors that the company is targeting a five-year compounded annual revenue growth rate of 20%, and that a good chunk of that growth will come from sales of its chips to data centers inside corporations and service providers, also known as hyperscalers. In 2019, AMD’s total revenue grew 50% to $6.7 billion, a major coup for the once-troubled company. Analysts have already projected that revenue growth will start decelerating this year, but still grow by double digits, with a growth rate of 29.4% projected for 2020 and 18.2% for 2021, according to FactSet.
“Data center becomes…