Tecnology
Nvidia Stock Rises and Leads Chip Makers Higher After AMD’s Strong Earnings
Feb
First American News LLC: Raleigh, NC: Nvidia was leading fellow chip makers higher early Wednesday following fourth-quarter earnings and a forecast from Advanced Micro Devices that smashed analysts’ expectations.
Nvidia (ticker: NVDA) was rising 5.3% to $259.52 in premarket trading Wednesday, Qualcomm (QCOM) was up 3.1%, and Micron Technology (MU) gained 2%. AMD’s chief rival, Intel (INTC), was down 0.9%.
Qualcomm is scheduled to report quarterly earnings after the closing bell Wednesday, and Nvidia’s report is expected on Feb. 16. Memory-chip company Micron reported strong fiscal first-quarter earnings in late December.
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AMD posted fourth-quarter adjusted earnings of 92 cents a share, higher than analysts’ forecasts of 76 cents. Revenue in the period was $4.8 billion, up 49% from a year earlier and above Wall Street estimates of $4.5 billion.
The company said it expects first-quarter revenue of $5 billion, give or take $100 million, up 45% from a year earlier and 4% higher sequentially. The company sees non-GAAP gross margin for the quarter of 50.5%, up from 50% in the fourth quarter. For 2022, AMD said it expects revenue of $21.5 billion, up 31% from 2021. Analysts at KeyBanc raised their price target on shares of AMD to $165 a share from $155 and maintained their Overweight rating, citing strong data center results and demand from cloud and enterprise customers.
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