AMD forecast fourth-quarter sales above estimates after Xilinx deal
(Reuters) - Advanced Micro Devices Inc (NASDAQ: AMD) on Tuesday forecast fourth-quarter revenue above Wall Street expectations after the semiconductor designer announced a $35 billion deal to buy chipmaker Xilinx Inc (NASDAQ: XLNX).
Shares of the company have been trading 4% lower since the announcement of the deal, which is AMD's largest buyout as it battles Intel Corp (NASDAQ: INTC) for a bigger share of the lucrative data center chips market.
Once lagging Intel, AMD has been taking market share as its larger rival faces delays in building the smaller, faster 7-nanometer chip technology.
AMD expects current-quarter revenue to be about $3 billion, plus or minus $100 million, compared with analysts' average estimate of $2.63 billion, according to IBES data from Refinitiv.
Total revenue jumped 56% to $2.80 billion in the third quarter ended Sept. 26, above analysts' expectations of $2.57 billion.
(Reporting by Munsif Vengattil and Stephen Nellis; Editing by Arun Koyyur)