Advanced Micro Devices, Inc. (AMD) Stock on a Precipitous Rise in Aftermarket, Here’s the Reason

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AMD Stock
AMD Stock

Advanced Micro Devices, Inc. (AMD), a semiconductor company, has surged 10.46% in aftermarket trading session and consequently is trading at $128.99 at the time of the writing. During Tuesday’s regular trading session, the stock gained an increase of 2.21% and closed the day at $116.78. The surge in aftermarket could be attributed to the announcement of quarterly and full-year 2021 results.

AMD Q4 2021 Results

Late on Tuesday, AMD announced the results for the fourth quarter of the fiscal year 2021. The quarter ended on 25th December 2021. The company generated revenue of $4.8 billion during the quarter, an increase of 49% year-over-year. The gross margin for the period was 50%, an increase of 5% on a year-over-year basis. The operating income generated by the company during the period was $1.2 billion against $570 million for the same period of 2020. The net income generated by the company during the three-month period stood at $974 million (or diluted EPS of $0.80) against $1.8 billion (or diluted EPS of $1.45) for the same three-month period of 2020.

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FY2021 Results

Alongside, AMD also released the results for full-year 2021. The company generated revenue of $16.4 billion during the year, an increase of 68% against fiscal 2020. The gross margin for the 12 month period stood at 48%, an increase of 3% when compared with that of the previous year. The net income for the year stood at $3.2 billion against $2.5 billion for the fiscal year 2020. The diluted EPS for the year stood at $2.57 against $2.06 for the fiscal year 2020.

Executive Commentary

AMD President and CEO Dr. Lisa Su, while commenting on the results said that fiscal 2021 has proven to be a record year for the company as it has generated tremendous amounts of revenue and profitability during the 12 month period. The company expects that 2022 would be another year of significant growth as it is ramping up its current portfolio and launching the next generation of PC, gaming, and data center products.

Future Outlook for AMD

Stats reveal that during the last one month, AMD stock has declined by approximately 18%, owing to both market-driven and company-specific reasons. Looking ahead, analysts believe that the company holds several negative signals at this point in time, and hence, it is expected to perform weakly in near future.

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