Advanced Micro Devices, Inc. (NASDAQ:AMD) shares are trading higher by 3.35% to $96.81 during Friday’s session. The stock is trading higher in possible sympathy with Intel Corporation, which reported better-than-expected fourth-quarter results and issued strong guidance.
What Happened With Intel?
Intel’s fourth-quarter earnings per share of 41 cents exceeded expectations (22 cents), and revenue of $14.2 billion beat estimates ($13.532 billion), despite an 8% YoY revenue drop. Success was attributed to strong operating leverage and expense control.
Intel’s Mobileye business unit meanwhile reported $530 million in fourth-quarter revenue, up 18% from the previous year…Read More
Why This Matters To AMD Investors
AMD and Intel are both major players in the semiconductor industry, and they often compete in the same markets. When Intel reports better-than-expected financial results and strong guidance, it can signal to investors that the overall semiconductor market is performing well.
As a result, other semiconductor companies, including AMD, may benefit from this positive sentiment.
This can lead to speculation that AMD may also report strong results or gain market share, which can drive its stock price higher.
See Also: Why Is Enphase Energy Stock Getting Obliterated?
According to data from Benzinga Pro, AMD has a 52-week high of $132.83 and a 52-week low of $58.03.
