Advanced Micro Devices AMD shares rallied 23.7% in the last trading session to close at $203.71. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 9% gain over the past four weeks.
AMD’s focus on high-performance computing, bolstered by its EPYC processors and Instinct GPUs, and its multi-year 6 GW GPU deal with OpenAI, positions the company to capture significant growth in the expanding AI and data center markets.
This chipmaker is expected to post quarterly earnings of $1.17 per share in its upcoming report, which represents a year-over-year change of +27.2%. Revenues are expected to be $8.71 billion, up 27.8% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Advanced Micro, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on AMD going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Advanced Micro belongs to the Zacks Computer - Integrated Systems industry. Another stock from the same industry, Agilysys AGYS, closed the last trading session 3.7% higher at $108.77. Over the past month, AGYS has returned -5.2%.
Agilysys' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.39. Compared to the company's year-ago EPS, this represents a change of +14.7%. Agilysys currently boasts a Zacks Rank of #3 (Hold).
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Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Agilysys, Inc. (AGYS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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