ADVANCED MICRO DEVICES, INC. Profile
Advanced Micro Devices, Inc. is a global semiconductor company that develops computer processors and related technologies for business and consumer markets. It design and integrate technology for intelligent devices, including personal computers, game consoles and cloud servers. The company operates through the following segments: Computing and Graphics, and Enterprise, Embedded and Semi-Custom. The Computing and Graphics segment includes desktop, notebook processors, chipsets, discrete GPUs and professional graphics. The Enterprise, Embedded and Semi-Custom segment includes server and embedded processors, dense servers, semi-custom SoC products, engineering services and royalties. Advanced Micro Devices was founded by W. J. Sanders III and David John Carey on May 1, 1969 and is headquartered in Sunnyvale, CA.
AMD Stock NEWS
We know about one sure-thing trade all year: buying Advanced Micro stock Devices AMD between $75 and $80. My conviction was so strong on this idea because I was closely watching everything competitor NVIDIA NVDA was doing and it seemed to me that AMD was doing a lot of the same things just as well, and yet the shares were trading at a significant discount to its bigger peer.
I became convinced about buying AMD pullbacks a year ago in July after the stock broke-out strongly from a consolidation around $55. The catalyst was another advance in the PC wars against rival Intel INTC.
AMD shares Surges From $80 to $105 Since June 17
AMD share price in (NASDAQ: AMD) have been rising after the semiconductor company reported its second-quarter earnings that beat analyst predictions with a stick. AMD reported its seventh straight quarter of double-digit revenue growth on Tuesday, leaving Nvidia Corporation (NASDAQ: NVDA) and Qualcomm Incorporated (NASDAQ: QCOM) trading flat to lower on Wednesday. The surge in AMD’s both revenue and earnings, driven by the ongoing global semiconductor shortage that has driven up both demand and prices for chips that go in everything, from cars and home appliances to children’s toys, wasn’t enough to bring other chips and graphics card makers in for the ride.
Q2 Figures Advanced Micro devices
If we look at pro forma figures, instead of earning $0.54 per share on sales of barely $3.6 billion as expected by analysts, AMD reported a $0.63-per-share profit on sales that amounted to $3.85 billion. When looking at GAAP figures, numbers aren’t quite as good but they are still good enough. Sales doubled YoY, rising 99% from last year’s figure. Operating profit margin more than doubled to 22%. As for the bottom line, profit amounted to $0.58 per share, up 346% from last year’s $0.13 per share.
Outlook AMD stock price Today
Updating guidance for the quarter to come, AMD updated its third-quarter guidance, expecting revenue at about plus or minus $100 million of $4.1 billion, which would imply a 6% improvement compared to Q2 numbers, 46% growth compared to last year ago, and well ahead of analysts forecast that estimated $3.8 billion. Sales of chips to the data center and gaming businesses is expected to keep driving growth with AMD planning to maintain its current 48% gross profit margin in both the undergoing and the whole of 2021.
Highlights AMD stock
For its second quarter, AMD reported 99% YoY growth in revenue driven by 65% YOY growth in its computing and graphics segment and 183% YoY in its enterprise, embedded, and semi-custom segment. It also increased its guidance, now expecting 60% YoY growth for 2021. The chipmaker reported its fifth straight quarter of record server processor revenue due to the strong demand for its Epyc processor after Intel (NASDAQ: INTC) reported a decline in its data center group last week. The demand for graphic cards is still high so as good as Q2 was, Q3 could be even better for AMD.
Key Points of AMD Share
- Strong earnings drove the stock this week.
- AMD’s third-quarter forecast outpaced Wall Street’s expectations.
- The CEO downplayed the current chip shortage.
Shares of Advanced Micro Devices (NASDAQ:AMD) have run sharply higher this week, surging as high as 14.7%. As of 2:16 p.m. EDT Thursday, the stock was up 14.5%. The semiconductor company was riding the wave of breakout financial results for the second quarter.
Not only did the chipmaker easily clear Wall Street’s expectations, but its growth accelerated from the already robust results it achieved in the first quarter.
AMD reported record revenue of $3.85 billion, which jumped 99% year over year, and accelerated 12% compared to the already impressive results it generated in the first quarter. The surge in profits was even more robust, with adjusted earnings per share (EPS) of $0.63, which soared 250%.
To put those numbers into perspective, analysts’ consensus estimates were calling for revenue of $3.62 billion and EPS of $0.54.
AMD pointed to increased processor sales and higher average selling prices (ASPs) as significant factors in its better-than-expected results. Expanding gross profit margin helped boost the bottom line.
What are the Expectation of AMD Managment
AMD expects to continue its growth streak into the third quarter. Management is forecasting revenue of roughly $4.1 billion (plus or minus $100 million). This would represent growth of 46% year over year, and an acceleration of 6% quarter over quarter. That’s well ahead of analysts’ consensus estimates of $3.82 billion.
CEO Lisa Su downplayed the current shortages in the semiconductor industry, saying the company would continue to grow and gain market share throughout 2021. Su also said she expects the current supply chain issues to improve sometime next year.
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