AMD Radiates as Cards Sell Like Hotcakes
Solid earnings from Advanced Micro Devices propelled the stock up 10% in after hours trading today. The company reported a 19% boost in revenue for the quarter. There is string demand for graphics cards amid growing demand from global trends such as cryptographic currency processing, increased specifications required for virtual reality and gaming, and new power for processing vast amount of big data used in machine learning and neural networks.
AMD is riding these trends which are all in their infancy, meaning there could be many years still before this run even begins to fizzle out. Nvidia has also seen high demand for its graphics cards, though AMD still comes ahead in some cases. Demand for AMD's Ryzen processors for PC computers had a large hand in helping the company top expectations.
That said, the company still lost $16M, or 2 cents per share. However a large part of the after hours pop is likely attributed to the guidance which called for 23% growth and 15% growth sequentially. During this quarter, company revenue jumped to $1.22B from $1.03B a year ago.