AMD shares jump as AI-driven data-center strength fuels growth outlook
Summary
Shares of AMD experienced a notable increase following strong performance in the artificial intelligence data center sector. This momentum has successfully boosted the company's overall financial growth outlook.
Our Take
AMD delivered the quarter bulls wanted: revenue of $13.38B and EPS of $2.09 beat estimates, data center sales nearly doubled to $8.5B (now 64% of revenue), and the Q4 guide of about $17B points to roughly 66% growth. Lisa Su also said data center AI growth is accelerating faster than AMD expected just 90 days ago, and that supply for next year is secured. That's the key line for anyone worried the AI spending cycle is peaking. But the price action tells a different story: AMD spiked to about $530 after hours, then gave back the entire move and slipped to roughly $479 premarket, below Tuesday's close. With the stock up about 127% this year and the midterm results putting a spotlight on AI data center regulation, holders are using good news to take profits. For traders, $483.90 (Tuesday's close) is now the line to reclaim. Getting back above it would show buyers defending the report; staying below it puts the pre-earnings range in the $470s back in play. Weak gaming sales remain the one soft spot in the report.
Opinion of Tech & Money Press. Not financial advice.
Source: Read the full story at Stock Market News