Advanced Micro Devices increased by 9.0% in Wednesday's trading, after the company indicated that it expected annual data center chip sales of $100 billion within the next five years, with its earnings more than tripling.
The Dow closed over 48K for the first time, while the Nasdaq gave back -0.25% today. And Cisco posted a Q1 beat late.
A semiconductor stock powered higher after the company highlighted strong demand trends and provided an upbeat sales forecast at its first-ever analyst day. Meanwhile, shares of an artificial intelligence software firm gave back some of their recent gains.
AMD CEO Lisa Su praised the Trump administration's artificial intelligence policies, predicted a $1 trillion data center market and more on "The Claman Countdown."
Advanced Micro Devices, Inc. CEO Lisa Su has unveiled the company's blueprint for capitalizing on the $1 trillion AI compute opportunity over the next three to five years. The latest AMD forecast is double of the $500 billion total addressable market AMD had projected just a year ago, highlighting favorable AI demand dynamics ahead to underpin its long-term earnings growth trajectory. AMD's upcoming product roadmap, which includes its first Helios rack-scale system ramp, represents the fundamental catalyst in reinforcing its multi-year AI growth target of 80%.
Major U.S. equities indexes were mixed at midday Wednesday ahead of a vote to fund the federal government and end the 43-day shutdown. The Dow Jones Industrial Average rose to a record high but they Nasdaq and S&P 500 were lower.
Su, who holds roughly 4.7 million AMD shares, had her net worth increase by $123 million (7.9%) to $1.7 billion on the chipmaker's stock jump.
The share price of American semiconductor giant Advanced Micro Devices (NASDAQ: AMD) is on a bullish run as investors react to the company's projected profit growth.
Advanced Micro Devices shares are getting a boost from its outlook.
Analysts at Bank of America just reiterated a buy rating on Nvidia. The firm says NVDA is well-positioned for healthcare and artificial intelligence.
AMD headlined broader growth among the tech-heavy Nasdaq, which advanced 0.1% early Wednesday. Other gains were posted by Qualcomm (up 1.4%), Micron Technology (1.3%), Adobe (0.9%), Nvidia (0.5%), Intel (0.2%) and Amazon (0.2%).
While the chip maker's investor day left analysts with questions about its chip rollout, AMD's big projections signaled a “clearly confident” company.