Why Is Advanced Micro Devices Surging Today?

Shares of chipmaker Advanced Micro Devices (NYSE: AMD  ) are up over 11% today after the company reported a beat on first-quarter earnings late last week. Analysts had expected the company to break even on non-GAAP EPS and for revenue to come in at $1.34 billion, but AMD came out ahead with non-GAAP EPS of $0.02 and revenue of $1.4 billion.

The beat came thanks to AMD's Graphics and Visual Solutions segment, which saw revenue up 118% year-over-year. It's this segment that makes the circuitry for the new Sony PlayStation 4 and Microsoft Xbox One gaming consoles, which have seen sales surge after their recent releases. 

Should investors be looking to invest in AMD today after its big gains? On today's Stock of the Day, Motley Fool analyst Jamal Carnette says he's holding off. In the video, Jamal notes that despite the impressive results from Graphics and Visual Solutions segment, things are slowing down there. In addition, AMD's Computing Solutions segment was down 10% year over year. Although Jamal thinks the company could be a decent turnaround play, he's going to keep it on his Watchlist for now.

Bigger than the Xbox and PlayStation, here's the biggest thing to come out of Silicon Valley in years
If you thought the iPod, the iPhone, and the iPad were amazing, just wait until you see this. One hundred of Apple's top engineers are busy building one in a secret lab. And an ABI Research report predicts 485 million of them could be sold over the next decade. But you can invest in it right now... for just a fraction of the price of AAPL stock. Click here to get the full story in this eye-opening new report.


Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2922454, ~/Articles/ArticleHandler.aspx, 7/23/2014 12:34:36 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement