Why Advanced Micro Devices Stock Was Up Today
Shares of Advanced Micro Devices (NASDAQ: AMD) were trading up 2.8% as of 10:29 a.m. ET Wednesday after the chipmaker reported another quarter of robust growth after the market closed Tuesday.
In the first quarter, revenue increased by 71% year over year, while adjusted earnings per share more than doubled to $1.13. Both numbers crushed the consensus analyst estimates, and management raised its full-year outlook.
Worries over supply shortages and other macroeconomic headwinds are among the reasons AMD stock has plunged 34% year to date. Investors were particularly concerned about the state of PC demand. AMD has experienced strong demand for Ryzen central processing units (CPUs) and Radeon graphics processing units (GPUs) used in personal computers over the last few years. However, PC sales dropped 5% year over year in Q1, according to research firm IDC. That stoked fears that AMD's momentum might finally dissipate in 2022.
Source Fool.com
