January 30, 2019
Despite 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.
Top news around the world
Coronavirus Disease

Coronavirus disease (COVID-19) is an infectious disease caused by a newly discovered coronavirus.

Most people infected with the COVID-19 virus will experience mild to moderate respiratory illness and recover without requiring special treatment. Older people, and those with underlying medical problems like cardiovascular disease, diabetes, chronic respiratory disease, and cancer are more likely to develop serious illness.

Around the World

Celebrity News

> Latest News in Media

Watch It
Sea Shepherd Capt. Details Wild Chase of Infamous Pirate Ship the 'Thunder' | TMZ
June 11, 2021
S7islZkQZIo
Swae Lee Throws Cash From Rooftop Patio During Lavish Birthday Celebration | TMZ TV
June 11, 2021
-83ShgVSocE
Sen. Elizabeth Warren Rips Jeff Bezos for Space Trip, Claims We're All Paying for it | TMZ
June 10, 2021
eG3salRjRT4
Kanye West unfollows Kim Kardashian and her sisters on Twitter | Page Six Celebrity News
June 11, 2021
vZEjwh8Ry1A
Noel Gallagher: ‘Woke snowflake’ Prince Harry ‘needs to shut up’ | Page Six Celebrity News
June 10, 2021
2MNgNB-TdRg
Meghan Markle’s relative explains why they ‘won’t ever talk again’ | Page Six Celebrity News
June 10, 2021
VCuzpmvN5x8
Lin-Manuel Miranda and the 'In the Heights' Cast on Premiering in Washington Heights and 'Wicked'
June 12, 2021
ubIISjK7HN4
Walk of Fame Mural Unveiling
June 11, 2021
2kKV3CfT9IU
How 'Cowboy Bebop' Inspired the Animated Title Sequence of 'The Flight Attendant' | Variety Artisans
June 11, 2021
8hqd-GLLbRY
Soccer Star Christian Erikson in Stable Condition After Collapsing | E! News
June 12, 2021
IVytapMZSz8
Nikki Bella Pens Adorable Birthday Post to Fiance Artem | E! News
June 12, 2021
BYpzdQfLJz0
Sarah Jessica Parker Shares FIRST Photo of "Sex and the City" Revival | E! News
June 12, 2021
DB4TUIRdcgM
TV Schedule
Late Night Show
Watch the latest shows of U.S. top comedians

Sports

Latest sport results, news, videos, interviews and comments
Latest Events
19
Nov
ASIAN CHAMPIONS LEAGUE: Group H
Sydney FC - Shanghai SIPG
17
Nov
UEFA NATIONS LEAGUE A: Group Stage
Spain - Germany
14
Nov
UEFA NATIONS LEAGUE A: Group Stage
Germany - Ukraine
08
Nov
ENGLAND: Premier League
Manchester City - Liverpool
08
Nov
ENGLAND: Premier League
Arsenal - Aston Villa
08
Nov
SPAIN: La Liga
Valencia - Real Madrid
08
Nov
ITALY: Serie A
AC Milan - Verona
08
Nov
ENGLAND: Premier League
West Bromwich Albion - Tottenham Hotspur
08
Nov
ITALY: Serie A
Bologna - Napoli
08
Nov
ITALY: Serie A
Genoa - Roma
08
Nov
ITALY: Serie A
Atalanta - Inter Milan
08
Nov
ITALY: Serie A
Lazio - Juventus
08
Nov
GERMANY: Bundesliga
Bayer Leverkusen - Borussia Monchengladbach
08
Nov
ENGLAND: Premier League
Leicester City - Wolves
08
Nov
GERMANY: Bundesliga
Wolfsburg - Hoffenheim
08
Nov
SPAIN: La Liga
Real Valladolid - Athletic Bilbao
08
Nov
SPAIN: La Liga
Levante - Alaves
08
Nov
SPAIN: La Liga
Real Sociedad - Granada CF
08
Nov
ITALY: Serie A
Torino - Crotone
08
Nov
SPAIN: La Liga
Getafe - Villarreal
07
Nov
GERMANY: Bundesliga
Borussia Dortmund - Bayern Munich
07
Nov
ENGLAND: Premier League
Everton - Manchester United
07
Nov
ENGLAND: Premier League
Chelsea - Sheffield United
07
Nov
SPAIN: La Liga
Atletico Madrid - Cadiz
07
Nov
SPAIN: La Liga
Barcelona - Real Betis
07
Nov
GERMANY: Bundesliga
Augsburg - Hertha Berlin
07
Nov
GERMANY: Bundesliga
Stuttgart - Eintracht Frankfurt
07
Nov
GERMANY: Bundesliga
RB Leipzig - SC Freiburg
07
Nov
ENGLAND: Championship
Rotherham - Preston NE
07
Nov
ITALY: Serie A
Parma - Fiorentina
07
Nov
ENGLAND: Championship
Watford - Coventry
07
Nov
ENGLAND: Championship
Norwich City - Swansea City
07
Nov
ENGLAND: Championship
Blackburn - QPR
07
Nov
ENGLAND: Championship
Derby County - Barnsley
07
Nov
ENGLAND: Championship
Huddersfield - Luton
07
Nov
ENGLAND: Championship
Nottingham Forest - Wycombe Wanderers
07
Nov
ENGLAND: Premier League
West Ham United - Fulham
07
Nov
ENGLAND: Championship
Sheffield Wednesday - Millwall
07
Nov
ENGLAND: Championship
Brentford - Middlesbrough
07
Nov
ENGLAND: Championship
Birmingham - Bournemouth
07
Nov
SPAIN: La Liga
Sevilla - Osasuna
07
Nov
ITALY: Serie A
Benevento - Spezia
07
Nov
ENGLAND: Premier League
Crystal Palace - Leeds
04
Nov
CHAMPIONS LEAGUE: Group stage, Group G
Ferencvaros - Juventus
04
Nov
CHAMPIONS LEAGUE: Group stage, Group G
Barcelona - Dynamo K.
03
Nov
CHAMPIONS LEAGUE: Group stage, Group A
Salzburg - Bayern Munich
03
Nov
CHAMPIONS LEAGUE: Group stage, Group D
Atalanta - Liverpool
Find us on Instagram
at @feedimo to stay up to date with the latest.
Featured Video You Might Like
zWJ3MxW_HWA L1eLanNeZKg i1XRgbyUtOo -g9Qziqbif8 0vmRhiLHE2U JFCZUoa6MYE UfN5PCF5EUo 2PV55f3-UAg W3y9zuI_F64 -7qCxIccihU pQ9gcOoH9R8 g5MRDEXRk4k
Copyright © 2020 Feedimo. All Rights Reserved.