A Big Reason Why AMD Stock Is a Screaming Buy
Advanced Micro Devices (NASDAQ: AMD) completed the $49 billion acquisition of Xilinx in February this year, which gave the former's first-quarter results and full-year outlook a huge shot in the arm.
AMD's first-quarter revenue jumped 71% year over year to a record $5.9 billion, with the contribution from Xilinx coming in at $559 million. AMD also pointed out that Xilinx's pro forma revenue during the quarter came in at $1 billion for the full quarter, an increase of 22% over the prior-year period. So Xilinx is going to move the needle in a big way for AMD in 2022, which is evident from the company's guidance for a 60% increase in full-year revenue to $26.3 billion.
AMD was earlier anticipating its 2022 revenue to increase 31% to $21.5 billion on the back of growth across all its businesses. More importantly, this acquisition is going to unlock a massive multi-year opportunity for AMD that could supercharge its growth in the long run. Let's see how.
Source Fool.com
