By Maria Armental
Advanced Micro Devices Inc. is on track for a record closing Thursday, a day after Xilinx Inc. reported stronger-than-expected quarterly results, including profit more than doubling from the year earlier despite industry-wide supply chain challenges.
Chip-maker AMD is buying Xilinx in a deal that is expected to close by year's end.
AMD recently traded around $104.29, up 6.5% for the day, and on track to beat yesterday's record closing of $97.93. Xilinx recently traded around $146.26, up 5.6%.
Both are among the top five best performers by daily percentage gain on the S&P 500, according to FactSet.
The two companies have highlighted strong data-center demand as more companies transition back to the office.
California-based Xilinx pointed to a 14% sequential revenue increase from the data-center group, driven by hyperscale cloud customers and the fintech market.
AMD, which also reported a better-than-expected financial performance in the latest period, said overall data-center revenue nearly doubled from the year earlier and increased sequentially from a high-teens percentage of overall revenue in the first quarter to more than 20% in the second quarter.
AMD raised its projection for revenue growth to about 60%, from about 50%, and said that the data-center business is expected to remain a strong driver into the second half of the year.
Write to Maria Armental at email@example.com
(END) Dow Jones Newswires
July 29, 2021 15:02 ET (19:02 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.