Shares of chipmaker Advanced Micro Devices (NASDAQ: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.