AMD Ryzen Threadripper
Courtesy AMD
Nvidia rose as did shares of fellow chip makers Wednesday following fourth-quarter earnings and a forecast from Advanced Micro Devices that smashed analysts’ expectations.
Nvidia (ticker: NVDA) was rising 1.4% to $249.86 on Wednesday, Qualcomm (QCOM) was up 5.3%, and Micron Technology (MU) gained 2.5%. AMD’s chief rival, Intel (INTC), was up 0.2%.
Xilinx (XLNX), which is being acquired by Advanced Micro Devices, was rising 5.7%.
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.
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.
AMD rose 6% to $123.83 on Wednesday.
As for Nvidia, it was added Tuesday to Raymond James’ list of Analyst Current Favorites, with analysts saying the company’s level of growth “can be found nowhere else in the semi space, and we don’t see that slowing anytime soon.”
Raymond James has a Buy rating on the stock, and a price target of $365 on Nvidia shares.
Write to Joe Woelfel at [email protected]
