Why AMD Stock Has Further to Run
Advanced Micro Devices (NASDAQ: AMD) stock has surged by more than 110% over the last 12 months, as of this writing, as the company continues to win business and grow revenue.
Guidance that came in slightly lower than what analysts were expecting helped send the stock down 6% after the recent fourth-quarter earnings report. CEO Lisa Su blame slowing sales of GPUs as consumers await the release of the next generation of gaming consoles. Since the new releases will begin in July, this likely amounts to delayed more than lost revenue. Rather than signaling that the rally has ended, the sell-off is more than likely a hiccup in a stock surge set to continue.
In the just-reported quarter, AMD beat earnings estimates by $0.01 per share, as the company reported $0.32 per share in quarterly profits. It also reported a 50% year-over-year increase in revenue and came in $20 million ahead of Wall Street's revenue expectations.
Source Fool.com
