What's Going On With AMD Shares

Advanced Micro Devices, Inc. AMD shares are trading higher by 1.7% to $117.80 Monday morning. The stock is trading higher, rebounding following weakness in recent sessions after the company issued third-quarter guidance with a midpoint below estimates. Also, the overall tech sector fell last week after Fitch downgraded the long-term credit rating of the United States.

What Else?

AMD shares are also trading higher after Morgan Stanley on Friday called the selloff after the company's earnings a buying opportunity. AMD's recent selloff presents a significant buying opportunity. Per Morgan Stanley, the selloff seems to be driven by concerns regarding MI300 expectations and conservative 2024 data center commentary.

Analysts say the launch of the MI300 data center GPU in fourth-quarter holds significant potential in the inference market, even though timing and competitive reactions may impact revenue realization.

Morgan Stanley believes AMD's partnerships in the AI space with major companies are key to its growth potential, and the management's cautious approach to CY24 revenue is prudent. The company's focus on data centers, Genoa ramp and the MI300 project bode well for future growth.

What Happened With Earnings?

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

The bottom-line number was down 44.76% from the year-ago quarter’s $1.05 per share and 3.33% lower than the first quarter’s 60 cents per share.

The Santa Clara, California-based company’s revenue fell 17.56% year-over-year but rose 0.94% sequentially to $5.36 billion...Read More

According to data from Benzinga Pro, AMD has a 52-week high of $132.83 and a 52-week low of $54.57.