Shares of Advanced Micro Devices, Inc. (AMD - Free Report) have been trending up, of late. Strong fundamentals and encouraging last reported results are some of the reasons which make AMD popular among the investors.
AMD reported non-GAAP earnings of 8 cents per share in fourth-quarter 2017 against a loss of 1 cent per share in the year-ago quarter. The figure also surpassed the Zacks Consensus Estimate of 5 cents per share.
Revenues increased 33.8% year over year to $1.480 billion and exceeded the Zacks Consensus Estimate of $1.407 billion. The year-over-year increase was primarily driven by robust performance of the company’s product portfolio comprising Ryzen CPU, EPYC and Radeon Vega GPUs.
Further, the company’s collaborations with Baidu (BIDU - Free Report) , Amazon, Tencent, Microsoft (MSFT - Free Report) and JD.com are other positive.
Portfolio Strength, GPU Demand Hold Key
The company launched Ryzen mobile processors with Radeon Vega graphics, recently. Notably, the company’s Ryzen PRO-based offerings have already been adopted by prominent commercial PC providers including Dell, Lenovo, Acer and HP. The availability of Ryzen Thread ripper processors has enabled AMD to re-enter the high-end desktop market.
The company also delivered robust growth in graphics driven by strength across graphics product portfolio. The company’s release of Vega-based GPUs and increasing demand for its Polaris products in both gaming and blockchain industries led to improved revenues. Launched during the quarter, Radeon RX Vega family of GPUs aimed at gaming enthusiasts has performed better than previous Radeon GPUs.
Adding to the positives, Apple (AAPL - Free Report) recently launched the new iMac Pro, powered by AMD’s Radeon Pro Vega product.
Solid demand for the expanded Ryzen processor family in the desktop market is also a tailwind.
Solid Growth Outlook
AMD provided encouraging first-quarter revenue guidance, primarily driven by robust performance of the company’s product portfolio comprising Ryzen CPU, EPYC and Radeon Vega GPUs. For first-quarter of 2018, management expects revenues to be roughly $1.55 billion (+/-) $50 million. This represents an increase of approximately 32% year over year.
For fiscal 2018, the company projects double-digit growth in revenues.
These factors bolstered investors’ confidence in AMD stock.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Shares of Advanced Micro Devices, Inc. (AMD - Free Report) have been trending up, of late. Strong fundamentals and encouraging last reported results are some of the reasons which make AMD popular among the investors.
AMD reported non-GAAP earnings of 8 cents per share in fourth-quarter 2017 against a loss of 1 cent per share in the year-ago quarter. The figure also surpassed the Zacks Consensus Estimate of 5 cents per share.
Revenues increased 33.8% year over year to $1.480 billion and exceeded the Zacks Consensus Estimate of $1.407 billion. The year-over-year increase was primarily driven by robust performance of the company’s product portfolio comprising Ryzen CPU, EPYC and Radeon Vega GPUs.
Further, the company’s collaborations with Baidu (BIDU - Free Report) , Amazon, Tencent, Microsoft (MSFT - Free Report) and JD.com are other positive.
Portfolio Strength, GPU Demand Hold Key
The company launched Ryzen mobile processors with Radeon Vega graphics, recently. Notably, the company’s Ryzen PRO-based offerings have already been adopted by prominent commercial PC providers including Dell, Lenovo, Acer and HP. The availability of Ryzen Thread ripper processors has enabled AMD to re-enter the high-end desktop market.
The company also delivered robust growth in graphics driven by strength across graphics product portfolio. The company’s release of Vega-based GPUs and increasing demand for its Polaris products in both gaming and blockchain industries led to improved revenues. Launched during the quarter, Radeon RX Vega family of GPUs aimed at gaming enthusiasts has performed better than previous Radeon GPUs.
Adding to the positives, Apple (AAPL - Free Report) recently launched the new iMac Pro, powered by AMD’s Radeon Pro Vega product.
Solid demand for the expanded Ryzen processor family in the desktop market is also a tailwind.
Solid Growth Outlook
AMD provided encouraging first-quarter revenue guidance, primarily driven by robust performance of the company’s product portfolio comprising Ryzen CPU, EPYC and Radeon Vega GPUs. For first-quarter of 2018, management expects revenues to be roughly $1.55 billion (+/-) $50 million. This represents an increase of approximately 32% year over year.
For fiscal 2018, the company projects double-digit growth in revenues.
These factors bolstered investors’ confidence in AMD stock.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on AAPL - FREE
Get the latest research report on AMD - FREE
Get the latest research report on MSFT - FREE
Get the latest research report on BIDU - FREE