Advanced Micro Devices (AMD) stock up despite weak earnings and guidance

 

Advanced Micro Devices (AMD) stock is up Wednesday following company quarterly earnings reported after the bell Tuesday evening. AMD reported earnings per share of $0.08, in-line with expectations. Revenue rose 4.9% ro $1.42 billion, but fell short of the $1.45 billion expectation on Wall Street.

AMD reported disappointing downside guidance for Q1, with expected revenues of $1.20-1.30 billion falling short of the $1.47 billion estimates. The decline is credited to lower graphics card and memory sales, as well as a decline in blockchain driven revenue. Analysts noted the company’s fiscal year 2019 projections imply a high single-digit growth rate.

Shares of AMD stock fell more than 12% earlier this week when peer chipmaker Nvidia (NVDA) cut revenue guidance, sending shares of NVDA stock down 17% Monday and draging down semiconductors as a whole.

AMD stock is trading at $22.32 as of 1:32 PM on Wednesday, Jan 30, a rise of $3.07, or 15.95% from the previous closing price of $19.25. The AMD stock has traded between $21.37 and $22.49 so far today. Volume today is elevated. So far 144,290,368 shares have traded compared to average volume of 102,308,190 shares.

Stock Score Report, InvestorsObserver’s proprietary scoring system gives AMD stock a score of 68 out of a possible 100. That score is based on three component scores. A fundamental score of 45, a long-term technical score of 62 and a short-term technical score of 97. A high short-term technical score signals recent strength in the stock. AMD stock holds an analyst average recommendation of Moderate Buy, with a median target price of $28.12, which is 26.3% higher than the stock’s current trading price.

Meanwhile, the major indices are higher. The NASDAQ has risen 1.29% to 7,118.95. The Dow Jones Industrial Average has risen 1.18% to 24,869.35. The S&P 500 is higher by 0.9% to 2,663.63.

Symbols: AMD NVDA

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