This is Why Advanced Micro Devices Jumped Today

AMD is a solid opportunity.

After pulling back to $114, analysts at Bernstein just upgraded the stock to a buy rating.

“It has been almost 10 years since we held an Outperform rating on AMD’s stock, an omission mostly emotional in nature,” analyst Stacy Rasgon said, referring to an unsuccessful bullish call on AMD earlier in his career as a chip analyst, as noted by Barron’s.

“This was a formative event in our analyst career, and the mental barriers to even contemplating a long call since then have been significant for us; much to our chagrin as watching AMD go from a sub-$2 stock to over $100 today takes the crown for the absolute biggest missed call in our entire Wall Street tenure.”

Helping, AMD recently crushed earnings.

Not only did the company post better than expected Q4 results, its forecast was well above expectations.  All thanks to strong demand for its servers and PC processors.

For the quarter, AMD posted revenue of $4.8 billion – up 49% year over year, with non-GAAP profits of 92 cents a share.  That beat expectations for $4.5 billion on profits of 76 cents.  For all of 2021, the company had revenue of $16.4 billion, up 68%, with non-GAAP profits of $2.79 a share, up from $1.29 a year earlier.

The company expects to see Q1 revenue of $5 billion, up 45% year over year.  It also sees non-GAAP gross margins of 50.5% for the quarter, up 50% quarter over quarter.  The Street was looking for $4.3 billion in revenue, and profits of 70 cents.