Advanced Micro Devices’ fourth-quarter results exceeded expectations, with strength in its server processors and cloud computing segments driving higher earnings per share of 69 cents compared to analysts’ estimates of 67 cents. Revenue of $5.6 billion was also above forecasts of $5.51 billion. In response, the company’s shares rose in after-hours trading.
For the current quarter, AMD (ticker: AMD +3.73%) projected a revenue of $5-5.6 billion, coming in slightly lower than the midpoint of the consensus of $5.5 billion. Despite a mixed demand backdrop, AMD Chair and CEO Lisa Su expressed confidence in their ability to capture market share and drive long-term growth thanks to a distinctive product lineup.
Shares of AMD surged in after-hours trading following the release of their quarterly results. However they eventually gave back some of their gains due to concerns of the current economic uncertainty. IDC reported that the worldwide shipments of PCs had decreased by 28% in the December quarter compared to the previous year. During the investor and analyst call, AMD executives mentioned that they could not provide full-year guidance due to the continued economic instability. Despite this, they did mention that a recovery in China would be advantageous for the company. However they could not speculate on the timing of such a rebound.
Intel (INTC) failed to meet expectations in its fourth quarter earnings report last Thursday and projected a revenue outlook for the March quarter which was much lower than analysts had predicted. The comparison of industry analysts showed a considerable price-to-performance disparity between Intel’s Sapphire Rapids server processor and AMD’s Genoa server chip. This could mean that AMD will continue to capture a larger share in the server market for the forthcoming quarters.
This content is provided for general information purposes only and is not to be taken as investment advice nor as a recommendation for any security, investment strategy or investment account.
Featured Courses
Recent news
Microsoft Heads for Worst Quarter Since 2008
Microsoft is facing its largest quarterly decline since 2008. Shares are down about 25% this quarter, making it the weakest Magnificent Seven member by a wide margin. The group is down roughly 14%. The stock fell another 1.7% after Friday’s open, marking a fourth consecutive day of losses. Two primary risks are driving Microsoft’s selloff […]
Unity Stock Surges 13% on AI-Focused Restructuring
Unity Software shares jumped 13% to $19.39 in premarket trading on Friday, briefly beating the S&P 500. Investors liked the company’s decision to cut weak assets and focus on AI-powered revenue growth. The main reasons were a strong first-quarter revenue outlook and Unity’s plan to shut down its ironSource Ads Network on April 30 and […]
NVIDIA Cheaper Than the S&P 500: Is This the Floor?
NVIDIA’s stock is now at its lowest valuation relative to the broader market in over ten years. This creates a rare buying opportunity for investors, as bargain hunters and long-term investors may find the historically low valuation appealing despite ongoing pressure on AI-related technology stocks. The main thesis is that NVIDIA is a unique investment […]
Trade with fewer limits
Day trade with fewer limits at fast speed. Buy stocks and ETFs at low fees.