Stocks

Advanced Micro Devices (AMD) Stock Soars 8.3% on Strong Trading Volume

Published January 17, 2024

In a notable trading session, Advanced Micro Devices (AMD) experienced a significant surge, with shares closing at an 8.3% increase valued at $158.74. This remarkable rise was supported by a trading volume that exceeded the average, with many shares being traded compared to the previous weeks which saw a 5.5% increase in the stock's value.

Factors Contributing to AMD's Growth

AMD's success can be attributed to its strong portfolio and an increasing base of partners. The company has witnessed a strong demand for its EPYC processors, which is a clear contributor to its growth trajectory.

Projected Earnings and Revenue

Upcoming earnings reports suggest that AMD could post earnings of $0.77 per share, an 11.6% increase year-over-year. Additionally, projections indicate that AMD's revenues might reach $6.11 billion, marking a 9.2% increase from the same period last year.

The Role of Earnings Estimate Revisions in Stock Performance

While evaluating the potential strength of a stock, expectations for earnings and revenue growth are key. However, trends in earnings estimate revisions are also strong indicators of possible stock price movements in the near term. For AMD, a slight upward revision in the consensus EPS estimate over the past 30 days might be a sign of further stock price gains.

AMD's Market Outlook

Currently, AMD holds a Zacks Rank #2 (Buy), pointing towards potential market optimism. It's important for investors to monitor AMD to see if the recent stock surge can evolve into a longer-term uptrend.

Comparison with Industry Peers

Within the same industry, Nova Ltd. (NVMI) saw a slight decrease of 0.2% in the last trading session, closing at $133.60. Over the past month, NVMI's performance showed a minor gain of 0.5%. Its earnings per share (EPS) estimate for the upcoming report remains steady at $1.24, which contrasts with a predicted year-over-year decrease of 3.1%. Nova Ltd. has an assigned Zacks Rank of #3 (Hold).

AMD, Stocks, Earnings