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AMD Shares Rise As Data Center Business Drives Results



AMD Shares Rise As Data Center Business Drives Results

(CTN News) – The stock of AMD rose Wednesday after the chipmaker reported stronger-than-expected data center chip sales in the fourth quarter. However, Advanced Micro Devices (AMD) offered a more cautious outlook for the current quarter.

It earned 69 cents a share on sales of $5.6 billion in the December quarter. Based on FactSet’s survey of analysts, is expected to earn 67 cents on sales of $5.51 billion.

In comparison with last year, AMD earnings decreased by 25% while sales increased by 16%. As a result of the acquisition of Xilinx, revenue grew and helped offset declines in sales of PC and gaming chips.

AMD’s PC chip sales declined 51% year over year in the fourth quarter due to a weak personal computer market. The gaming segment reported a 7% decline in revenue to $1.6 billion.

During the same period, data center chip sales increased by 42% to $1.7 billion, driven primarily by Epyc server processors.

Following the release of the report, AMD shares rose

In the current quarter, expects sales of $5.3 billion, a decline of 10% from last year. The first quarter was expected to generate $5.5 billion in revenue, according to analysts.

AMD’s stock rose 9% today to 81.93. AMD closed Tuesday at 75.15 after rising 3.7%.

Based on our differentiated product portfolio, we are confident we will gain market share in 2023 and deliver long-term growth,” CEO Lisa Su said.

The Wall Street market is divided over the news

Both bulls and bears were pleased with fourth-quarter report. stock’s price target was raised by four Wall Street analysts and lowered by three.

The PC market is expected to bottom in the first quarter, according to AMD. During the first half of the year, cloud computing customers will also be digesting chip inventory.

To counter the headwinds in the overall market, hopes to take share away from Intel (INTC). Analysts say the company’s profit margins will be impacted by those efforts.

In IBD’s fabless semiconductor industry group, AMD stock ranks 12th out of 34 stocks. The IBD Composite Rating is 72 out of 99. Based on the Composite Rating, a stock’s key growth metrics are compared to all other stocks regardless of industry.


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