What's Going On With AMD Stock Monday?

Monday, at Vmware, Inc VMW VMware Explore 2023 Las Vegas, Advanced Micro Devices, Inc AMD continued to showcase its proven performance and growing adoption of AMD EPYC CPUs, AMD Pensando data processing units (DPUs), and adaptive computing products for the most efficient and innovative virtualized environments. 

A system powered by a 4th Gen AMD EPYC 9654 CPUs and a Pensando DPU delivers approximately 3.3x the Redis application performance and 1.75x the aggregate network throughput compared to a 4th Gen EPYC system with standard NICs. 

Also Read Nvidia's Lead in Generative AI Market Unchallenged Despite AMD's New AI Chip Launch: Analysts

Additionally, servers with 2P 4th Gen EPYC 9654 CPUs alone can use up to 35% fewer servers in an environment running 2000 virtual machines (VMs) compared to Intel Corp INTC 2P Intel Xeon 8490H-based servers.

Forrest Norrod, EVP and GM of Data Center Solutions Business Group, AMD, said, "Consolidation and modernization enable businesses to increase server utilization and efficiency while delivering impressive performance for critical enterprise workloads. 

Our ongoing collaboration with VMware enables customers to get more efficient and agile to reach their digital transformation goals."

Wall Street analysts remain divided over AMD's prospects in tapping the artificial intelligence wave versus Nvidia Corp NVDA.

In July, Raymond James analyst Srini Pajjuri expected AMD to win a 10% - 20% share of the inferencing market in the long term, implying multi-billion dollar revenues with accretive margins. 

For the second quarter that ended June 30, 2023, AMD reported non-GAAP earnings per share of 58 cents, ahead of the consensus estimate of 52 cents per share.

The revenue fell 17.56% year-over-year but rose 0.94% sequentially to $5.36 billion vs. consensus of $4.81 billion, and the company previously guided to revenue of $5.3 billion plus or minus $300 million.

Price Actions: AMD shares traded higher by 1.87% at $107.42 on the last check Monday.