Why is Advanced Micro (AMD) stock trending?

Highlights

• Advanced Micro Devices (NASDAQ:AMD, AMD:US) stock surged by over two per cent to close at US$ 113.33 per share on Friday, February 18, after it drew attention from investors amid some recent announcements.
• The Santa Clara, California-headquartered company, is known to provide high computing and graphic tech solutions for the gaming, data center and other immersive space.

• Advanced Micro Devices, on February 14, said that it completed the acquisition of an FPGA (field-programmable gate array) creator, Xilinx.

Advanced Micro Devices (NASDAQ:AMD, AMD:US) stock surged by over two per cent to close at US$ 113.33 per share on Friday, February 18, after it drew attention from investors amid some recent announcements.

The Santa Clara, California-headquartered company, is known to provide high computing and graphic tech solutions for the gaming, data center and other immersive space.

Let us find out why Advanced Micro Devices is gaining traction.

Why is Advanced Micro Devices (NASDAQ:AMD, AMD:US) stock trending?

The tech player has seen a few developments recently. For instance, on February 14, Advanced Micro Devices said that it has completed the acquisition of FPGA (field-programmable gate array) creator Xilinx. This purchase is expected to accelerate developments in computing techs combined with intelligent applications.

On February 16, the US$ 185-billion market cap company announced the expansion of AMD EPYCTM processor-based offerings to Amazon Web Services (AWS) by providing EC2 C6a instances.

These new instances, the company said, provides Amazon customers with powerful compute performance and cloud scalability for workloads.

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Advanced Micro Devices Q4 FY2021 results

The computing tech company saw its revenue climb by 49 per cent year-over-year (YoY) to US$ 4.82 billion in the fourth quarter of fiscal 2021, taking its full-year revenue to US$ 16.4 billion.

However, the semiconductor company noted a net income of US$ 974 million in the latest earnings report, which was a decline of 45 per cent YoY.

How is AMD stock performing?

Currently, the semiconductor stock is priced approximately 57 per cent higher than its 52-week low of US$ 72.50 apiece (May 13, 2021).

AMD stock also expanded by over 28 per cent in the past 12 months.

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Bottomline

Advanced Micro Devices has said that it expects its revenue to be around US$ 5 billion in Q1 FY2022, i.e., approximately 45 per cent up YoY and about four per cent up quarter-over-quarter (QoQ).

The company also stated that it expects 2022 revenue to reach around 21.5 billion, which would be an increase of about 31 per cent YoY.

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.