AMD shares jump over 7% after posting $13.4 billion in quarterly revenue
Advanced Micro Devices just reported $13.4 billion in quarterly revenue.
The short version
- That is up 45% from a year ago.
- Investors cheered the strong numbers across the entire tech sector.
- Your own tech investments or retirement accounts could feel the lift.
Advanced Micro Devices, the major chip designer, just saw its shares climb in extended trading on Tuesday after beating Wall Street expectations with $13.4 billion in revenue for the September quarter. That figure is up 45% from a year ago and ahead of the $13.1 billion analysts had been looking for, according to MarketWatch.
Adjusted earnings hit $2.09 per share, topping estimates of $1.95 and showing growth of 74% year over year. Much of that strength came from the data-center business, which saw revenue nearly double to $8.5 billion. CEO Lisa Su said production is taking off for the company's first-ever rack-scale solution, Helios, and next-generation Venice CPUs.
There was plenty of skepticism around AI spending heading into the earnings report, but Advanced Micro Devices gave the market a reason to stay with the trade. "There was plenty of skepticism around AI spending heading into the print, but AMD gave the market a reason to stay with the trade," said Jake Behan, the head of capital markets at ETF provider Direxion.
The strong report lifted other chip stocks as well, including Arm Holdings, Intel, and Nvidia. The company now expects total revenue of $17 billion in the fourth quarter, beating the $16.3 billion consensus analyst view. While personal computer markets remain weak and rival Intel recently saw shares fall, Advanced Micro Devices continues to weather the slump better than its competitors.
For your portfolio, a rising tide in the chip sector often brings wider relief after months of a rough patch in tech stocks. At least the servers powering the digital world are working overtime.
