Close
Date TimeJanuary 30, 2019
VoiceDespite a rough first-quarter outlook, the chip company still foresees revenue growth this year.

What happened
Shares of chip company Advanced Micro Devices (NASDAQ:AMD) soared on Wednesday following a mixed fourth-quarter report. AMD produced less revenue than expected, and its earnings were in line with analyst estimates. The company's guidance for the first quarter called for a steep revenue decline, but its solid full-year guidance gave investors reason to cheer. The stock was up about 15.2% at 11:30 a.m. EST.

So what
AMD reported fourth-quarter revenue of $1.42 billion, up 6% year over year but about $20 million below the average analyst estimate. Computing and graphics revenue rose 8.6% year over year on the strength of the company's Ryzen PC processors. The enterprise, embedded, and semi-custom segment posted flat revenue, with growth in EPYC server CPU sales offsetting lower semi-custom revenue.
Why Shares of AMD Are Surging Today
Non-GAAP earnings per share came in at $0.08, up from $0.01 in the prior-year period and in line with analyst expectations. Non-GAAP gross margin was 41%, up 7 percentage points from the prior-year period, with the improvement driven by Ryzen and EPYC.
AMD's first-quarter guidance was downright awful thanks to the bursting of the cryptocurrency bubble. The company expects revenue of $1.25 billion, plus or minus $50 million, which represents a year-over-year decline of 24%. AMD is still working through excess graphics card inventory, and expected growth from Ryzen and EPYC won't be nearly enough to offset the graphics weakness.
However, AMD still expects to grow revenue in 2019. The company sees high-single-digit revenue growth this year, driven by Ryzen, EPYC, and the company's data center GPU products. That optimistic full-year outlook is likely what's driving the stock higher.

Now what
AMD will launch a new generation of Ryzen CPUs, built on a 7nm manufacturing process, sometime in mid-2019. The second generation of its EPYC server processors is also coming soon, and AMD is aiming to win a double-digit share of the lucrative data center market.
Growth from the CPU business will need to offset a slumping GPU business. AMD is going to start off 2019 with a steep revenue decline, but it's betting that a strong second half will more than offset its GPU troubles. With the stock rocketing higher, investors are buying into that story.

10 stocks we like better than Advanced Micro Devices
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*
David and Tom just revealed what they believe are the ten best stocks for investors to buy right now… and Advanced Micro Devices wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Trump calls his own intel chiefs 'extremely passive and naive'
Foxconn reconsiders plan for Wisconsin manufacturing hub
Tyson Foods recalls more than 36,000 pounds of chicken nuggets after possible rubber contamination
Best of Late Night: Colbert on the Polar Vortex: ‘Viral Marketing for “Game of Thrones” Has Gone Too Far’
Snow hits the UK; Manchester Airport closed, flights canceled
Filmmaker Sir Peter Jackson announces new documentary on the Beatles
Theresa May and Jeremy Corbyn clash over Irish backstop 'alternatives' at PMQs
Maroon 5 cancels its news conference at Super Bowl LIII
Celine Dion responds to body-shamers concerned over her slimmer figure: 'Leave me alone'
Laura Plummer lands back in Britain after being released from prison in Egypt
Grammy-Winning R&B Star James Ingram Dead At 66
Phillies fans fooled by fake Bryce Harper MLB rumor on Twitter
Stacey Abrams to deliver the Democratic response to Trump’s State of the Union
Empire Actor Jussie Smollett Attacked In Suspected Racist And Homophobic Incident
Labour ready to back Cooper amendment on article 50 extension
Kendall Jenner and Bella Hadid facing possible subpoenas over Fyre Festival
'Black Panther' returning to theaters for free Black History Month screenings
Brexit: May to ask EU to reopen withdrawal agreement over Irish backstop
Former Labour MP Fiona Onasanya jailed in speeding case
Aasia Bibi cleared after years on death row for blasphemy in Pakistan
Let Me Finish review: Everybody hates Chris Christie – and he hates Jared Kushner
Jeff Flake rules out 2020 primary challenge to Trump
Trump accepts invitation from Pelosi to deliver State of the Union on Feb. 5
John Krasinski Causes Meltdown on Twitter As He Tears Up During Wife Emily Blunt's SAG Speech
Katie Price reveals plans to adopt a Nigerian orphan
Apple rushes to fix FaceTime bug that let users eavesdrop on others
Toy Story 4: NEW teaser gives first look at THIS major original character’s return
Facebook's popularity dips with UK children, says Ofcom
Green MSP Ross Greer and James Cleverly on Churchill legacy
Miley Cyrus honors Ellen with earrings featuring her iconic Time cover
Elon Musk demands PewDiePie to let him host meme review with hilarious Tweet
3-year-old boy who went missing in woods for days says bear kept him safe
George Groves announces his retirement from boxing
Manchester United plot FA Cup revenge after being drawn against Chelsea
Michael Jackson Family Condemns 'Leaving Neverland' Documentary About Accusers
Lady Gaga and Christian Carino SAG Awards PDA - Lady Gaga and Christian Carino Kiss at SAG Awards
Hillary Clinton tells friends she's leaving 2020 door open
Pelicans star Anthony Davis wants to be traded, agent says
Will the next iPhone charge wirelessly?
NASA’s Mars Opportunity rover may have 'died' in dust storm, scientists fear
Emma Stone and Boyfriend Dave McCary at 2019 SAG Awards
2019 SAG Awards Analysis
Kamala Harris says the powerful seek to divide America
Gemma Collins Left In Tears After Falling Flat On Her Face During Live ‘Dancing On Ice’ Routine
Vanessa Hudgens' Most Iconic Rent Live Moments
WWE Royal Rumble: Becky Lynch WIN sends fans WILD after eliminating Nia Jax and Charlotte
Zac Efron Sundance party leaves attendees angry, freezing
Formula E: Rita Ora looks on as Sam Bird wins in Santiago
Connor Wickham ends long wait as Crystal Palace knock out Tottenham
SAG Awards 2019 Winners: The Complete List
Earth’s Oldest Known Rock Found on Moon - Scientists Explain How It Got There
Dakota Theriot, suspect in 5 killings in Louisiana, arrested in Virginia
Lady Gaga and Bradley Cooper Perform 'Shallow' Together in Las Vegas: Watch
Novak Djokovic outclasses Rafael Nadal to win his seventh Australian Open
One in 20 Britons ‘does not believe’ Holocaust took place, poll finds
Banksy drawing, worth millions, of sad-faced girl stolen in Paris
Pete Davidson’s Stand-Up Sets Are All About ‘Sick Genius’ Ariana Grande
M. Night Shyamalan and James McAvoy clear up Glass
UK's 'highest taxpayers' revealed in first-ever Sunday Times list
Meghan Markle's independence is rubbing royals the wrong way
Did Kylie Jenner Reference Taylor Swift With New Valentine's Day Collection?
Matt LeBlanc Stole A 'Friends' Prop For The Sweetest Reason
Roger Stone set to appear in federal court in Washington DC
Fatima Ali, 'Top Chef' fan favorite, dies at 29
Ann Coulter Admits To Bill Maher: ‘OK, I’m Very Stupid Girl' About Donald Trump
Katie Price Admits To Self-Medicating With Drugs But Denies It Was Reason Behind Rehab Stint
Naomi Osaka wins Australian Open final to seal back-to-back grand slams
Bernie Sanders set to announce 2020 presidential run
Miley Cyrus Shares Sexy Instagram Photos in Low-Cut Black Dress After Getting New Ink
Box Office: 'Glass' Slamming 'Kid Who Would Be King,' 'Serenity'
Pelosi: What does Putin have on the President?
Melania Trump – An Apology
Michel Legrand, Oscar-winning composer, dies aged 86
Why the Australia Day debate gets more heated every year
Roger Stone says he won't testify against Trump after Mueller indictment
Trump's speech from the White House Rose Garden
NASA delivers clearest view yet of space snowman Ultima Thule
Djokovic sets up blockbuster Australian Open final with 'greatest rival' Nadal
LaGuardia airport closed to incoming flights due to lack of air traffic controllers in shutdown
Anne Hathaway Confirms 'The Princess Diaries 3' Is Happening
Asian Cup: South Korea knocked out by Qatar in quarter-finals
Facebook to integrate Instagram, Messenger and WhatsApp
Even Beyoncé Can't Believe How Similar She and Blue Ivy Carter Look
Jessica Biel regrets dressing 'so sexy all the time' in her younger days
'Shameless' Star Tina Malone Served Court Summons Over James Bulger Killer Post
How Americans Acquired a Taste for Haggis, with Help from the Scottish Poet Robert Burns
Trump ally Roger Stone arrested on seven charges in Mueller inquiry
Azealia Banks: fearless truthteller or relentless troll?
Detainment: why Oscar-nominated Jamie Bulger doc has prompted outrage
Grave of explorer Matthew Flinders unearthed near London station
Hugh McIlvanney, doyen of sportswriting, dies aged 84
19 Rihanna Watching Basketball Pictures You Have To See Before You Die
China's latest monkey cloning tests are considered 'monstrous'
Trump's surrender on State of the Union makes it even less likely Pelosi will give in on border wall
Thierry Henry suspended by Monaco as manager after 104 days in charge
Vampire Weekend Drop Two New Songs, Album Due This Spring (Listen)
The best and the worst Jennifer Lopez films – ranked
Pacers hold off Raptors but lose star Victor Oladipo
Commerce Secretary Wilbur Ross: The US is still 'miles and miles' from a China trade deal
Transfer roundup: Jordan Lukaku joins Newcastle on loan
Netflix issues warning not to watch Conversations With A Killer: The Ted Bundy Tapes alone
Rafael Nadal dismantles Stefanos Tsitsipas to reach Australian Open final
Scotland's former first minister Alex Salmond arrested and charged
China blocks Bing; Ghosn quits Renault; Central bankers talk
Australian Open 2019: Naomi Osaka's power sets up final against Petra Kvitova
Weezer Surprise-Releases Covers Album
Diana Athill, writer and editor, dies aged 101
Trump says he won't deliver State of the Union address until shutdown is over
Russia and key allies vow to stand by Maduro in Venezuela crisis
J. Cole Takes Aim at Kanye West on New Song ''Middle Child''
Airbus could quit Britain as it calls Brexit a ‘disgrace’
Lady Gaga Had an Interesting Reaction to Bradley Cooper Being Snubbed by the Oscars
TSLA: Wall Street goes after Tesla at a critical time
Serena Williams’s Australian Open Comes to an Abrupt, Bizarre End
Phillip Schofield Insists He And Holly Willoughby Aren't In Trouble Over Gemma Collins 'Dancing On Ice' Comments
Jonas Mekas, titan of underground filmmaking, dies aged 96
Speaker Nancy Pelosi stands firm: No State of the Union address in the House next week
Venezuela: Trump recognises opposition leader as president
Johnny Depp Claims He Has Evidence to Disprove Amber Heard's Domestic Violence Allegations
Miley Cyrus's Bold New Tattoo Is Totally Miley
Comedian and co-creator of 'Rel' Kevin Barnett dies at 32
Four men accuse Bohemian Rhapsody director Bryan Singer of sexual misconduct
Pete Buttigieg forms exploratory committee to run for president
Santander to close 140 branches across UK, putting 1,270 jobs at risk
PMQs verdict: Corbyn leaves May sounding defensive on Brexit
No Brexit deal means hard Irish border, EU says
‘Still here’: Tom Brady isn’t going anywhere. And he’s going to let you know it
Cardiff City’s Emiliano Sala was on missing plane, French authorities say
Drake UK tour 2019: How to get tickets as dates to nationwide Assassination Vacation shows announced
Why the conversations between black men in ‘If Beale Street Could Talk’ feel so rare
Oscars 2019: Biggest snubs including Bradley Cooper, Emily Blunt and 'Crazy Rich Asians'
American singer Chris Brown detained in Paris after rape complaint
Oscar Nominations 2019: Olivia Colman, 'Black Panther' And 'A Star Is Born' Lead Academy Award Nominees
Lady Gaga Says Mike Pence Is 'Worst Representation' of Christianity During Las Vegas Show
Emma Stone Debuts Drastically Darker Hair at the Producers Guild Awards
Cardi B Gets Into Twitter Beef with Tomi Lahren Over Politics
Gemma Collins Furiously Accuses 'Dancing On Ice' Judge Jason Gardiner Of 'Selling Stories' On Her
Chris Evans on Virgin Radio – same show, different station
Arsenal confirm Sven Mislintat will leave club on 8 February
Pence links Trump’s push for border wall to Martin Luther King Jr.’s legacy
Kamala Harris officially enters US presidential race
Ariana Grande Sends Message to Mac Miller on His Birthday
'SNL': Pete Davidson appears to joke about Instagram post that prompted wellness check
Stefanos Tsitsipas stuns Roger Federer in four-set Australian Open thriller
Sterling and Sané ensure Manchester City cruise to victory at Huddersfield
Victoria Beckham admits rocky marriage rumors are ‘frustrating’
Kim Kardashian Effectively Makes Peace With Taylor Swift by Listening to Her Music
US, China to Share, Publicly Release Data From Dark Side of the Moon - NASA
Ariana Grande accused of copying latest song '7 Rings' from rapper Princess Nokia
Charity renews call for elderly driver eye tests after Prince Philip crash
'Glass' Review: It's not Perfect, But It Says a Lot About Heroism
Maggie Rogers: Heard It in a Past Life review – Alaska hitmaker's debut lacks edge
Trump reportedly told Michael Cohen to lie. His own attorney general pick testified that’s a crime
TV tonight: ‘Frankie and Grace,’ ‘The Punisher’ return on Netflix
Ariana Grande drops '7 rings'
Hailey Baldwin and Justin Bieber Are Marrying in L.A. and Their Guest List Includes Kylie Jenner and Travis Scott
Pelosi only gives Trump a bigger audience by canceling State of the Union
Miley Cyrus shuts down pregnancy rumors in 'egg-celent' way: 'Can everyone leave me alone'
Hitachi scraps £16bn nuclear power station in Wales
Rudy Giuliani: 'I never said there was no collusion' by Trump campaign
Louisville to rename airport for Muhammad Ali
American service members killed in Isil blast near US patrol in Syria's Manbij
Pelosi asks Trump to move State of the Union address
Who ya gonna call? Ivan Reitman sends son Jason to direct Ghostbusters 3
Hitman guilty of murdering Salford 'Mr Big' Paul Massey
Ariana Grande to Headline Lollapalooza 2019 (EXCLUSIVE)
Alicia Keys to Host Grammys 2019
Kim Kardashian defends Kanye West from reports
Gillette’s ad is not PC guff, Piers Morgan – look beyond the macho stereotype | Gaby Hinsliff
Carol Channing, star of Hello, Dolly! on Broadway, dies aged 97
'Spider-Man: Far From Home' trailer: Watch the first look here
Watch The 'Game Of Thrones' Season 8 Teaser Here
Meghan Markle reveals her due date: report
Lady Gaga Rushes Home After Critics' Choice Awards to Be With Dying Horse: 'I Am So Very Sad'
Trump says 'I never worked for Russia,' calls claim 'a whole big fat hoax' after explosive report of FBI probe
Toyota brings back the Supra sports car after more than 20 years
'So happy you said yes': Chris Pratt engaged to Katherine Schwarzenegger
Mayor of Gdansk dies after being stabbed on stage at charity event
Gareth Johnson: Tory Tasked With Getting Other MPs To Vote For May’s Deal Quits – To Vote Against It
Andy Murray out of Australian Open after losing what could be his last match
Katy Perry Is Glad She "Made the Right Choice" With Orlando Bloom
Neil Warnock on Brexit: ‘I can’t wait to leave. To hell with the rest of the world’
'The most insulting thing I've ever been asked': Fox News' Jeanine Pirro asks Trump if he's ever worked for Russia
Americans blame Trump and GOP much more than Democrats for shutdown, Post-ABC poll finds
Megyn Kelly, NBC News reach separation agreement
SpaceX will lay off 10 percent of its staff to fund projects
The partial government shutdown is now the longest ever as Trump border wall fight rages on
Paris bakery 'gas explosion' kills two firefighters
Tulsi Gabbard: Democrat says she will run for president in 2020
Tim Tebow Is Engaged to Miss Universe 2017 Demi-Leigh Nel-Peters
Sen. Kamala Harris teases a presidential run to Stephen Colbert, predicts how the shutdown ends
Dianne Oxberry, BBC weather presenter, dies aged 51
Andy Murray: Sporting great and champion feminist retires
Jayme Closs, 13, found alive three months after parents' murder
Meghan Markle's Royal Patronages Have Finally Been Announced and There Are FOUR
Lady Gaga apologizes for 'poor judgment' over R. Kelly song, vows to pull 'Do What U Want'
Jeff Bezos' Relationship with TV Host Lauren Sanchez Led to Divorce
Jaguar Land Rover is slashing 4,500 jobs
Corbyn says Labour may delay Brexit if it wins snap election
This Awesome Shot of Earth Was Taken From 70M Miles Away
Close