Why AMD Stock Is Rising Today

Advanced Micro Devices Inc AMD shares are trading higher Thursday in sympathy with Broadcom Inc AVGO after the company reported better-than-expected results and issued strong guidance.

Broadcom reported fiscal second-quarter revenue of $8.1 billion, which beat the estimate of $7.9 billion, according to data from Benzinga Pro. The company reported quarterly earnings of $9.07 per share, which beat the estimate of $8.70 per share.

Broadcom said it expects fiscal third-quarter revenue of approximately $8.4 billion versus the estimate of $8.01 billion.

Lenovo Group also said it was seeing easing supply shortages in its PC segment, which has helped lift the semiconductor sector. Supply chain issues have weighed on the industry this year, but a Shanghai reopening could soon provide a boost for the supply-chain outlook, as a gradual reopening is anticipated.

On Thursday morning, AMD announced the completion of its Pensando Systems acquisition, which is expected to expand the chipmaker's data center solutions capabilities. AMD also announced that Microsoft Corp MSFT will use AMD Instinct MI200 accelerators to power large scale AI training workloads. 

See Also: This Investor Just Sold Apple Stock To Buy Microsoft: Here's Why

AMD Price Action: AMD has traded between $76.83 and $164.45 over a 52-week period.

The stock was up 7.07% at $99.19 at time of publication.

Photo: courtesy of AMD.