Advanced Micro Devices, Inc. (NASDAQ:AMD) stock rose 1.09% (As on May 4, 11:36:34 AM UTC-4, Source: Google Finance) after the company forecast stronger than expected full year and second-quarter revenue as the data center boom fuels demand for its chips. The Enterprise, Embedded and Semi-Custom segment has been growing much faster than the company’s other main segment as processing chips are being embedded in more and more products. Non-GAAP gross margin was 53%, an increase of 7 percentage points year-over-year and 3 percentage points quarter-over-quarter. The year-over-year increase was primarily driven by higher server processor revenue and high margin Xilinx revenue. The quarter-over-quarter increase was primarily driven by high margin Xilinx revenue, higher server processor revenue and richer client product mix. The company delivered non-GAAP operating income was $1.8 billion compared to $762 million a year ago and $1.3 billion in the prior quarter. Cash, cash equivalents and short-term investments were $6.5 billion at the end of the quarter. The company repurchased $1.9 billion of common stock during the quarter. Record cash from operations was $995 million in the quarter compared to $898 million a year ago and $822 million in the prior quarter. Record free cash flow was $924 million in the quarter compared to $832 million a year ago and $736 million in the prior quarter. AMD’s balance sheet reflects $49.6 billion of goodwill and acquisition-related intangible assets associated with the acquisition of Xilinx.

AMD in the first quarter of FY 22 has reported the adjusted earnings per share of $1.13, beating the analysts’ estimates for the adjusted earnings per share of 91 cents. The company had reported the adjusted revenue growth of 71 percent to $5.89 billion in the first quarter of FY 22, beating the analysts’ estimates for revenue of $5.52 billion, according to Refinitiv IBES data. AMD’s Enterprise, Embedded and Semi-Custom segment saw record revenue of $2.5 billion, also beating analyst predictions of $2.3 billion. Computing and Graphics segment revenue was $2.8 billion, up 33% year-over-year and 8% quarter-over-quarter. The year-over-year increase was driven by Ryzen and Radeon processor sales.

The company expects revenue to be of about $6.5 billion, plus or minus $200 million for the current quarter. Analysts on average were expecting revenue of $6.38 billion, according to Refinitiv data. For the full year it forecast $26.3 billion, up about 60%, and ahead of analysts estimates of $25.145 billion according to Refinitiv IBES data.