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 CoursesRecent news
D-Wave Stock Rises 2.7% Despite 81% Revenue Drop: Here’s Why
Despite D-Wave Quantum’s 81% revenue drop, shares rose 2.7% in premarket trading. Investors focused on a jump in bookings, indicating real business progress. Here’s a look at the numbers and why the company’s outlook matters more than its recent performance. First-quarter revenue fell to $2.86 million, down from last year and below the $4.2 million […]
GameStop Shares Drop 4.7% After eBay Turns Down $56B Takeover Offer
eBay swiftly rejected GameStop’s $56 billion takeover bid, calling it neither credible nor attractive. GameStop shares fell 4.7% in premarket trading. This decision raises questions about what it means for both companies and whether Ryan Cohen will give up or try again. Most investors were not surprised. Since the bid was announced, eBay’s stock traded […]
Hims Stock Drops 14.6% After Posting an Unexpected Loss
Hims and Hers Health’s latest results disappointed investors. Shares dropped 14.6% in premarket trading on Tuesday. The company posted a first-quarter loss, catching analysts off guard. They had expected a profit. Here’s a look at what happened, what the company’s guidance means for the future, and whether the stock’s sharp drop is justified. The subscriber […]
Trade with fewer limits
Day trade with fewer limits at fast speed. Buy stocks and ETFs at low fees.