AMD boosts outlook

By Matt Whipp

Posted on 5 Dec 2002 at 16:22

AMD has raises predictions for fourth quarter.

AMD's processors and high-density flash memory products are seeling faster than expected, says AMD. Accordingly it is raising it predicted sales growth for Q4 to 25 per cent, up from its originally stated 20 per cent.

It is now setting revenue targets of nearly $700m for the quarter, up from $508m for the previous.

The company says it is experiencing high demand for its PC processors, due to seasonal demand along with a 'more competitive and richer product mix'. Its sales of flash memory is also being pulled along, particularly in high-end mobile phones.

AMD will make fourth quarter announcements on 16 January. Shares rose more than six per cent to $8.38.

Separately, Intel is also expected to make similar announcements of better than expected sales for the quarter after trading ends today, and mainly for the same reasons: higher demand for computer chips and flash products in mobile phones.

Good news for the quarter has been widely expected from Intel for some time, and shares in the chip giant have increased some 60 per cent since its October low.