Advanced Micro Devices Inc. shares jumped 9.5% on Wednesday. Strong results from AI cloud provider CoreWeave and an upbeat analyst report on server processors drove a broad rally in semiconductor stocks.<\/p>\n
AMD stock traded at $564.17 in afternoon trading, up 9.50%. It outpaced Nvidia, which gained about 5%. The move added to a sharp rebound from last week’s AI selloff.<\/p>\n
CoreWeave lifts chip sector<\/p>\n
The rally began after CoreWeave reported third-quarter results late Tuesday that beat analyst forecasts. The company reported revenue of $3.66 billion and raised its full-year 2026 revenue forecast to between $13.0 billion and $13.3 billion, according to The Motley Fool.<\/p>\n
CoreWeave also said it plans capital investment of $37 billion to $39 billion. Analysts said that points to continued heavy spending on data center chips, including AMD’s processors. CoreWeave shares surged more than 25%.<\/p>\n
UBS sees CPU boom<\/p>\n
AMD also got a boost from a UBS report on server processor sales.<\/p>\n
UBS analyst Timothy Arcuri said server CPU shipments rose 31% from a year earlier in the third quarter. He said AMD’s server CPU market share held steady at about 28.4%, while Intel’s share fell 2.4 percentage points.<\/p>\n
Arcuri also believes CPU prices are rising, which could boost AMD’s profit margins. He projected that CPU sales could reach $210 billion by 2030. At AMD’s current market share, that would mean nearly $60 billion in CPU sales for the company.<\/p>\n
AI systems increasingly need powerful central processors alongside graphics chips, which has fueled demand for AMD’s EPYC server processors.<\/p>\n
Goldman names AMD a top pick<\/p>\n
Goldman Sachs analyst James Schneider said AI stocks were “clearly in oversold territory” and named AMD, Nvidia and Broadcom as top picks. He described AMD as “very attractive” for growth, though less compelling on valuation.<\/p>\n
AMD has a 12-month median price target of $650, based on 56 analysts, according to The Motley Fool.<\/p>\n
Sharp swings<\/p>\n
AMD shares have been extremely volatile. On Nov. 5, the S&P 500 fell 4.4% in its worst day of the year, while AMD dropped 17.3%, according to Trefis.<\/p>\n
The stock then rebounded more than 11% on Monday. CNBC’s Jim Cramer called AMD a winner in a post on X, but warned that “a data center multi-year roadmap in this country is now suspect.”<\/p>\n
AMD’s year-to-date gain stood at about 140% as of Tuesday, according to Trefis.<\/p>\n
Record quarter<\/p>\n
AMD reported record third-quarter revenue of $13.4 billion earlier this month, up 45% from a year earlier and above analyst expectations. Adjusted earnings per share came in at $2.09, up 74% and ahead of forecasts.<\/p>\n
Management said demand exceeds supply. The company increased inventory by about $3 billion in the quarter to $11.5 billion to meet strong data center demand.<\/p>\n
Free cash flow fell to $554 million in the quarter from $1.9 billion a year earlier, which management attributed to working capital and spending on capacity.<\/p>\n
AMD pairs its Instinct AI graphics chips with EPYC server processors in its Helios rack-scale systems. The company also runs PC, gaming and embedded chip businesses, giving it a broader revenue mix than Nvidia.<\/p>\n
This article is for informational purposes only and does not constitute investment advice.<\/p>\n","protected":false},"excerpt":{"rendered":"Advanced Micro Devices Inc. shares jumped 9.5% on Wednesday. Strong results from AI cloud provider CoreWeave and an…\n","protected":false},"author":2,"featured_media":159458,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[129],"tags":[74422,74421,6010,74418,74419,35871,74420,223],"class_list":["post-159457","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ubs","tag-ai-chip-demand","tag-amd-epyc-processors","tag-amd-shares","tag-amd-stock","tag-coreweave-results","tag-semiconductor-stocks","tag-server-cpu-market-share","tag-ubs"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/117604114853347556","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/159457","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=159457"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/159457\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/159458"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=159457"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=159457"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=159457"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}