Shares of Advanced Micro Devices (AMD) climbed despite the company’s reported 98% drop in quarterly net profit and its failure to provide a full-year forecast. This is not an expected event, but AMD has the advantage of being judged alongside Intel (INTC). Investors are encouraged by CEO Lisa Su’s assurance that they will be able to continue stealing market share with their Genoa server chip, which goes up against Intel’s Sapphire Rapids processor. Su declared, “We anticipate a slow first half and then a stronger second half, however we feel quite confident about our long-term prospects.”
Stocks of AMD rose 3.3% in premarket trading to $77.61.
Despite weak personal-computer and gaming demand, AMD’s fourth-quarter earnings surpassed consensus expectations, in contrast with Intel, which slashed executive pay after missing expectations last week.
According to KeyBanc analysts, AMD’s primary growth driver will likely be data centers this year, as they upgraded their target price to $95 from $80 and kept their Overweight rating.