AMD stock rises
Advanced Micro Devices (AMD) has taken the stock market by storm, growing 20% after its fourth-quarter earnings release on January 29. With the release, the company guided for high-single-digit revenue growth in fiscal 2019, driven by its data center products. By midday today, it had risen 8%.
AMD’s growth today is likely related to rival Intel’s (INTC) announcement of a new CEO. Intel stock fell 2.6% in today’s first half after the company announced its selection of interim CEO Bob Swan as its permanent CEO. Some analysts saw AMD CEO Lisa Su as a strong contender for the role.
AMD’s stock price momentum
AMD and NVIDIA (NVDA) stock fell 4.6% and ~18%, respectively, on January 28 and 29 after NVIDIA lowered its fiscal 2019 fourth-quarter revenue guidance by 18.5%, from $2.7 billion to $2.2 billion. NVIDIA and Intel hinted at weak demand in the data center market, on which AMD has been banking for this year’s growth. However, Lisa Su assured investors that data center growth is strong and will accelerate in the second half of this year when AMD’s 7nm (nanometer) EPYC server CPU (central processing unit) hits the market.
Since bottoming out due to cryptocurrency-related troubles on December 24, AMD and NVIDIA stock has risen 35.4% and 8.1%, respectively. This rally saw AMD stock surpass analysts’ median price target of $22 and its 200-day moving average of $22.22. It’s now moving towards its next growth cycle. Bullish analysts expect AMD stock to rise 60% to $40 in the next 12 months.
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