Advanced Micro Devices, Inc. (NASDAQ:AMD) stock rose 3.46% (As on Feb 2, 11:39:57 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 21. Non-GAAP net income was $1.1 billion compared to $636 million a year ago and $893 million in the prior quarter. AMD’s Enterprise, Embedded and Semi-Custom segment posted revenue of $2.2 billion that came in above forecasts of $2.1 billion. AMD’s Enterprise, Embedded and Semi-Custom segment revenue rose 74.6% YOY, accelerating from the previous quarter’s pace and ending a deceleration trend that had begun in the second quarter. The segment encompasses server and embedded processors, semi-custom System-on-Chip (SoC) products, development services, and game console technology. It does not include AMD’s desktop and notebook microprocessors, which are included in the company’s Computing and Graphics segment. Revenue for the Computing and Graphics segment rose 31.8% YOY to $2.6 billion in the fourth quarter. Cash, cash equivalents and short-term investments were $3.6 billion at the end of the quarter. The company repurchased $756 million of common stock during the quarter. Free cash flow was $736 million in the quarter compared to $480 million a year ago and $764 million in the prior quarter.

AMD in the fourth quarter of FY 21 has reported the adjusted earnings per share of 92 cents, beating the analysts’ estimates for the adjusted earnings per share of 76 cents. The company had reported the adjusted revenue growth of 49 percent to $4.8 billion in the fourth quarter of FY 21, beating the analysts’ estimates for revenue of $4.5 billion.

For the first quarter of 2022, AMD expects revenue to be approximately $5.0 billion, plus or minus $100 million, which represents an increase of approximately 45 percent year-over-year and approximately 4 percent quarter-over-quarter. For the full year 2022, AMD expects revenue to be approximately $21.5 billion, an increase of approximately 31 percent over 2021 driven by growth across all businesses.

Meanwhile, AMD reiterated that it has received approval from China’s State Administration for Market Regulation for its planned acquisition of semiconductor company Xilinx, Inc. AMD first announced plans to acquire Xilinx in October 2020 through a transaction valued at $35 billion.6 AMD expects the deal to close sometime during the current quarter.1 The company is still waiting for clearance from the U.S. government.7 The acquisition would help AMD better compete with Intel Corporation in the market for data center chips.