AMD Shares Jump 3.7% as Data-Center Revenue Climbs 32%
AMD shares rose 3.7% to $216.04 after investors backed its position as a second source for AI chips, extending a recent surge. The company’s data-center revenue climbed 32% year-over-year, led by EPYC processors and Instinct accelerators, despite guiding Q1 sales of roughly $9.8 billion.
1. Afternoon Session Rally
AMD shares advanced 3.7% in the afternoon session, reaching $216.04, as investors increasingly view the company as a critical 'second source' for high-demand AI chips, building on gains from the prior trading session.
2. Data-Center Segment Strength
The company’s data-center division reported 32% year-over-year revenue growth, driven by robust sales of EPYC server processors and Instinct AI accelerators, reflecting strong enterprise and cloud provider demand.
3. Guidance and Investor Reaction
Despite beating Q4 estimates with 34% sales growth and 40% EPS growth, AMD’s forecast of approximately $9.8 billion in Q1 revenue disappointed some investors, tempering sentiment after the rally.