AMD Stock Increased Roughly 8% On Wall Street’s Optimism

AMD Stock


After the release of the firm’s most recent quarterly earnings and forecast, shares of chipmaker AMD (NASDAQ:AMD) rocketed about 8% higher during the trading day on Wednesday, giving the business more room to flex its financial muscle.

Advanced Micro Devices, Inc. (NASDAQ:AMD) said late Tuesday that for its fiscal first quarter, it anticipates revenues to be in the range of $5 billion to $5.6 billion, which would be about 10% less than they were during the same time in the previous year. AMD (NASDAQ:AMD) Chief Executive Lisa Su said on a conference call on Tuesday that the company anticipates its businesses in the data center and embedded systems to continue to be robust. In contrast, the company anticipates that its PC and gaming divisions will continue to see challenges.

According to Su, “the data center is our most significant growth engine.” “We will monitor the macro [economic climate] on client [PCs] and gaming, but we are optimistic about what we can achieve [in the data center].”

Analyst Vivek Arya from Bank of America Securities described the forecast for AMD’s (NASDAQ:AMD) business as a “mixed bag.” Still, he predicted an expected increase in server sales “could revive” profitability in the year’s second half.

Arya has a buy rating on the AMD stock and has set a price objective of $82 per share for the company’s stock. He believes that the server business of AMD can expand by at least 20% this year from 2022.

Analyst Harsh Kumar at Piper Sandler stated that he was “enthused” by AMD’s outlook and that the “most important and notable items” from the company’s report were that AMD anticipates sales of data centers and personal computers to bottom out in the first quarter of this year, and then begin to head northward after that.

AMD stock is now rated as overweight, and Kumar has set a price objective of $90 per share.

In addition to providing a forecast, AMD said that the company earned 69 cents per share on sales of $5.6 billion for the fourth quarter of the fiscal year 2022.

Christian Schwab, an analyst at Craig Hallum, was less optimistic than some of his peers and downgraded AMD stock from buy to hold due to worries about the company’s sales growth.

Featured Image: Freepik

Please See Disclaimer

About the author: I'm a financial journalist with more than 1.5 years of experience. I have worked for different financial companies and covered stocks listed on ASX, NYSE, NASDAQ, etc. I have a degree in marketing from Bahria University Islamabad Campus (BUIC), Pakistan.