Advanced Micro Devices (AMD 3.45%) stock is climbing today thanks to strong results from another player in the artificial intelligence (AI) space. The company's share price was up 1.8% as of 3 p.m. ET and had been up as much as 5.6% earlier in the session.
After the market closed yesterday, Oracle published results for the first quarter of its current fiscal year, which ended Aug. 31. The company posted sales and earnings that fell short of the market's expectations, but it issued forward guidance that's powering a big rally for its own shares and other AI stocks.
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AMD stock rises on Oracle's blockbuster guidance
Oracle recorded a non-GAAP (adjusted) adjusted profit of $1.47 per share on sales of $14.93 billion, falling short of the average analyst estimate's call for a per-share profit of $1.48 on sales of $15.04 billion. While the performance in fiscal Q1 fell short of Wall Street's targets, the company said that it expected revenue from its Oracle Cloud Infrastructure business to surge 77% annually to reach $18 billion in the current fiscal year. Four fiscal years later, the company expects revenue from the business will have risen to an astonishing $144 billion.
What's next for AMD?
Oracle's incredible sales guidance for its cloud infrastructure business looks like a bullish indicator for AMD. As a provider of processors that are used in data centers, the company could see strong demand tailwinds in conjunction to Oracle's infrastructure scaling and buildout moves from other players in the data center space. On the other hand, AMD still has yet to show that it can compete with Nvidia in the high-end data center processor market.
