AMD sold $8.5 billion of data center chips last quarter. That's up 97% from a year ago. Nearly double. Lisa Su said so on the call, and she was not joking.
The stock jumped 8% after hours. It's up 129% this year. Some of you bought the dip on Friday. Some of you bought it at the top in March. All of you will tell your family it was a plan.
Look at the mix. Data center is now 64% of AMD's revenue. A year ago it was 47%. Meanwhile, the Client and Gaming segment fell 8%. The chips in your gaming PC are now a rounding error at the company that makes them.
You are the rounding error.
Revenue hit $13.4 billion. Adjusted earnings came in at $2.09 a share against estimates near $1.94. Wall Street expected good news and got slightly better good news. The stock rose 8% anyway. Nobody can explain it. I can't. The chart doesn't care.
Here is what the chart says. AMD closed regular trading at $483.90, then added another 7.5% after hours to $520.40. A rally from a number you can't afford to a number you really can't afford.
Intel fell 29% on Friday. AMD sold off in sympathy with fears about AI overspending. Then it reported a record quarter and the fear evaporated in four minutes. Your feelings about AI spending are as durable as that.
Lisa Su also expects server revenue to double in 2027. She said that out loud, to analysts, on the record. Somewhere a man with a Robinhood account and a Ryzen 5 is calling that confirmation of his thesis.
He has no thesis. He has a Ryzen 5.
Photo by on Unsplash
Leave a Comment