What's Going On With Advanced Micro Devices Stock?

Advanced Micro Devices, Inc. AMD shares are moving Wednesday after Texas Instruments, Inc. TXN reported better-than-expected first-quarter results.

The Details:

Texas Instruments reported quarterly earnings of $1.20 per share, beating estimates of $1.08 per share, and revenue of $3.66 billion, which beat the consensus estimate of $3.611 billion. 

AMD is set to report its first-quarter results on April 30 after the market close. According to estimates from Benzinga Pro, analysts expect the company to report earnings of  61 cents per share and quarterly revenue of $5.459 billion. 

Last week, AMD announced its new AMD Ryzen PRO 8040 Series with x86 processors and the AMD Ryzen PRO 8000 Series desktop processor, the first AI-enabled desktop processor for business users constructed with the advanced 4-nanometer technology.

According to data from Benzinga Pro, AMD shares are trading below the stock’s 50-day moving average of $178.57 after shares of semiconductor companies fell last week. 

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AMD Stock Forecast In 2030:

Interest rates play an important role in the equity markets. When rates are high, it can discount the present value of future cash flows, which can put pressure on growth stocks such as Advanced Micro Devices. This is because the majority of Advanced Micro Devices's profits are expected to be realized in the future. Higher interest rates increase a company's cost of capital. If you're curious about learning about stockholder equity and how the balance sheet is evaluated, check out the resources here.

Long-term investors should also look at a company's historical revenue growth and decide whether they think it is likely to increase, slow down or remain stagnant. Advanced Micro Devices' revenue has grown at an average rate of 38.27% annually over the past 5 years.

Advanced Micro Devices operates in the Information Technology sector and has a forward P/E of 45.66, suggesting it is considered a value stock. Investors in growth stocks will generally focus on the company's future plans and industry growth, while value investors will see stable revenue streams and dividend growth.

AMD Price Action: According to Benzinga Pro, Advanced Micro Devices shares are up 0.57% at $153.14 at the time of publication Wednesday.

Image: Courtesy of Advanced Micro Devices, Inc.