Stock Story -
What Happened: Shares of computer processor maker AMD (NASDAQ:AMD) jumped 5.3% in the pre-market session after peer, Taiwan Semiconductor Manufacturing Company reported strong Q4'2023 results that exceeded Wall Street's revenue and EPS expectations.
During TSMC's earning call, CEO C.C. Wei added, "2023 was a challenging year for the global semiconductor industry, but we also witnessed the rising emergence of generative AI-related applications, which TSMC as a key enabler." Looking ahead, the company expects revenue to grow in the low-to-mid 20% range in 2024, supported by "strong demand for nanometer technologies and robust AI-related demand."
This suggests a possible turning point for the semiconductor sector as we approach the upcoming earnings season, considering the challenges observed toward the end of 2023. After the initial pop the shares cooled down to $163.23, up 1.9% from previous close.
Is now the time to buy AMD? Find out by reading the original article on StockStory.
What is the market telling us: AMD's shares are very volatile and over the last year have had 23 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 2 days ago, when the company gained 5.8% on the news that it was named a "Top Pick" in Barclay's list of favorite stocks for the "2nd Wave of AI." Barclays (LON:BARC) also raised its price target for AMD's stock from $120 to $200. The new price target indicates more than a 30% premium compared to where shares traded when the upgrade was announced. The list also featured other semiconductor stocks like Coherent (NYSE:COHR), NXP (NASDAQ:NXPI) Semiconductors (NASDAQ:NXPI), Western Digital (NASDAQ:WDC), and Camtek (NASDAQ:CAMT).
AMD is up 17.7% since the beginning of the year, TODO Investors who bought $1,000 worth of AMD's shares 5 years ago would now be looking at an investment worth $7,851.
