AMD Surges as Wall Street Cheers 2019 Forecast and ‘Execution’
- Chipmaker says 2019 revenue to grow by high single-digits
- AMD is hitting its ‘stride’ as Intel struggles, Jefferies says
Photographer: Ashley Pon/Bloomberg
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Advanced Micro Devices Inc. jumped as much as 16 percent in early trading Wednesday, the most in a year, after forecasting high single-digit revenue growth in 2019, as compared to analyst predictions that sales would increase 6 percent.
The outlook shows the chipmaker is “hitting its product cycle stride,” Jefferies said, while JPMorgan said it shows AMD is executing well on its products. Other analysts were concerned that AMD has ground to make up after significantly missing its first-quarter forecast, and will have to do so against increasing competition from Intel Corp.