Advanced Micro Devices Inc (NASDAQ:AMD) shares are rising in Thursday’s after-hours session following a blowout quarter from rival chipmaker Intel Corp (NASDAQ:INTC), which sent the stock soaring.
- Advanced Micro Devices stock is trending. Why is AMD stock up today?
Intel Sees Unprecedented AI Demand
Intel reported 25% year-over-year revenue growth in the second quarter, representing its strongest revenue growth in more than 15 years. The chipmaker also delivered adjusted earnings that were double what analysts were expecting.
Intel’s Data Center and AI segment increased 59% year-over-year to $6.3 billion, and the company guided for continued revenue growth well above analyst expectations.
Intel forecasted third-quarter adjusted earnings of 38 cents per share on revenue of $15.8 billion to $16.8 billion, versus analyst estimates of 24 cents and $15.1 billion, according to Benzinga Pro. The company also raised its capital expenditures outlook to a range of $18 billion to $20 billion, per Reuters.
“AI-driven compute continues to strengthen, and to support expected growth this year and next across products and foundry, we are meaningfully increasing our investments in equipment, clean room space, and substrates,” Intel CFO Dave Zinsner said.
Intel and AMD are the two suppliers of x86 server processors, the host CPUs that pair with GPUs and other accelerators inside AI data center racks. The two chipmakers are the major players in this market, so the demand signal from Intel is being viewed as a positive for AMD.
AMD is due to report its own financial results for the second quarter after the market close on Aug. 4.
AMD Shares Move Higher After The Close
AMD Price Action: AMD shares were up 2.81% in after-hours, trading at $554.85 at the time of publication on Thursday, according to Benzinga Pro.
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