Why AMD Stock Is Rising After Hours

Advanced Micro Devices Inc (NASDAQ: AMD) shares are trading higher in Wednesday’s after-hours session in sympathy with shares of Nvidia Corp (NASDAQ: NVDA), which jumped 7% on fourth-quarter earnings.

Quarterly revenue was down 21% year-over-year, but full-year 2022 revenue stayed flat. Data center was up 11% year-over-year, while gaming was down 46%.

“AI is at an inflection point, setting up for broad adoption reaching into every industry. From startups to major enterprises, we are seeing accelerated interest in the versatility and capabilities of generative AI,” said Jensen Huang, founder and CEO of Nvidia.

“We are set to help customers take advantage of breakthroughs in generative AI and large language models. Our new AI supercomputer, with H100 and its Transformer Engine and Quantum-2 networking fabric, is in full production. Gaming is recovering from the post-pandemic downturn, with gamers enthusiastically embracing the new Ada architecture GPUs with AI neural rendering,” Huang added.

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Outlook: Nvidia sees first-quarter revenue of $6.5 billion, plus or minus 2%, versus estimates of $6.33 billion.

AMD and Nvidia are direct competitors in the chip space and often move in tandem. AMD reported its fourth-quarter results at the end of January. The company turned in a top and bottom-line beat but issued a weaker outlook.

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AMD Price Action: AMD shares are up 3.24% after hours at $79.10 at the time of publication, according to Benzinga Pro.

Photo: courtesy of AMD.

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This article Why AMD Stock Is Rising After Hours originally appeared on Benzinga.com

Source: https://finance.yahoo.com/news/why-amd-stock-rising-hours-002212471.html