Advanced Micro Devices (AMD) Stock: Should You Buy The Earnings Decline?


Advanced Micro Devices, Inc. (NASDAQ: AMD) is having an overwhelmingly rough day in the market today, but it’s not for that great of a reason. The company reported earnings, and while it wasn’t exactly what investors wanted to see, growth was there. Nonetheless, investor concerns hit, sending the stock downward in a big way and prompting our partners at Trade Ideas to send the alert. At the moment (10:24), AMD is trading at $11.26 per share after a loss of $2.36 per share (17.33%) thus far today.

AMD Reports Earnings

As mentioned above, Advanced Micro Devices isn’t having the best of days in the market today after reporting earnings. Ultimately, the company reported a net loss of $0.04 per share with sales totaling $984 million. This is impressive year-over-year growth and right in line with analyst expectations. In the quarter ahead, AMD is expecting revenue to rise 12% year-over-year to $1.15 billion.

So, Why Did The Stock Fall?

At first glance, you would think that AMD would be doing incredibly well, coming in line with expectations. However, the stock took a dive. The reason is relatively simple. You see, investors expected Ryzen to really take off and take market share from Intel. While it did take some market share away, it wasn’t the blockbuster that many investors thought it would be.

Nonetheless, my friends, we are still in the beginning here. In fact, Steve Feffer said it best when he offered the following on Twitter:

The bottom line here is that the company is growing, product launches are on track, and Ryzen is likely to be overwhelmingly successful in the long run. With the price of the stock on a low at the moment, now may be a great time to jump in.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping a close eye on AMD. In particular, we’ll be watching the ongoing growth of Ryzen as well as several planned product launches ahead. We’ll continue to follow the story closely and bring the news to you as it breaks!

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