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It didn’t look like Advanced Micro Devices (NASDAQ:AMD) could have much more upside after such a powerful breakout last week. However, AMD stock proved its doubters wrong on July 28, ripping higher on better-than-expected earnings.
The move catapults the stock to new all-time highs, as the chipmaker continues to steam forward. Alongside Nvidia (NASDAQ:NVDA), another name I love, the two companies continue to show that they can get it done with or without the novel coronavirus.
Let’s dig deeper on this name.
AMD Stock Rips on Earnings
Earnings of 18 cents per share topped estimates by a penny. Revenue of $1.93 billion grew 26% year-over-year and beat expectations by $70 million. For a company to grow sales 26% at a time like this is impressive.
However, it was guidance that really motivated investors to bid shares higher by roughly 9% in after-hours trading.
Management expected third-quarter revenue of $2.45 billion to $2.65 billion, well ahead of the consensus $2.3 billion estimate. For the full-year, management upped its revenue growth guidance from a range of 20% to 30%, to 32%. That’s about 700 basis points ahead of the consensus view calling for approximately 25% revenue growth in 2020.
To some investors, a glance at the headline numbers may not resonate with the recent stock move. That is, rallying more than 25% in the past five trading sessions (including the post-earnings move).
However, I would argue that AMD delivered exactly what investors needed to see. That is, a strong quarter, expectations for a solid Q3 and a more robust full year in a time of major uncertainty. Combined with the news from Intel (NASDAQ:INTC) and investors see the runway in AMD.
Editor's Note: Click here to keep reading.
VIDEO: The electric car battery demo breaking the Internet
A new type of battery is taking the Internet by storm.
When you see what it can do you might not believe what you are seeing is real.
Insiders are calling a “paradigm shift” in energy technology…
A “forever battery” that will usher in the next great energy revolution.
Even going so far as to call it the “Jesus Battery” because the properties it exhibits are so miraculous.
Forbes calls it simply, “The battery that could change the world.”
Already, the world’s biggest auto makers are inking blockbuster deals to get this new type of battery into their fleets as soon as possible—General Motors… Ford… Toyota… BMW… Volkswagen… Honda… Mitsubishi… Mercedes… Nissan… Hyundai… Audi… and Porsche…
Even leading oil corporations like BP and Exxon are bracing for the impact it’s about to have on society and are now making huge investments.
What is this new battery exactly, and what is it capable of?
Editor, Matt McCall’s Investment Opportunities
P.S. Right now the world’s most influential businessmen are storming this red-hot technology right now, while it’s still in its infant stages: Microsoft Founder Bill Gates, Amazon founder Jeff Bezos, China’s richest man and Alibaba founder Jack Ma, and Facebook founders Mark Zuckerberg & Dustin Moskovitz just to name a few. Click here for the full story.