Advanced Micro Devices (NASDAQ: AMD) stock surged alongside NVIDIA Corporation (NVDA) following the latter’s robust quarterly earnings and upbeat guidance.
Nvidia (NASDAQ: NVDA) has released its fourth-quarter financial report, showcasing a remarkable performance with revenue reaching $22.10 billion, marking a 265% increase year-over-year. This figure notably surpasses the Street’s estimate of $20.62 billion. In addition, the adjusted EPS of $5.16 has outperformed the Street consensus estimate of $4.64.
Looking ahead, Nvidia anticipates continued growth momentum, projecting first-quarter revenue to reach $24.0 billion, plus or minus 2%, outperforming the Street’s consensus estimate of $22.16 billion.
Analysts widely regard Advanced Micro Devices (NASDAQ: AMD) as the second most significant beneficiary of artificial intelligence, following Nvidia.
U.S. Government Escalates Crackdown on SMIC
Meanwhile, significant developments have been unfolding within the industry. The U.S. government has escalated its enforcement measures against Semiconductor Manufacturing International Corp (SMIC), a prominent Chinese chipmaker, by imposing further restrictions on American imports to its most advanced manufacturing facility. This move comes after the factory produced a high-tech chip for Huawei’s Mate 60 Pro phone, per a Reuters report.
The U.S. Commerce Department has put a stop to shipments from American suppliers to SMIC’s most advanced plant, causing a significant impact on trade amounting to millions of dollars, with Entegris (NASDAQ: ENTG), a key supplier of chipmaking materials and parts, bearing the brunt.
Entegris promptly ceased its shipments upon receiving notification from the Commerce Department, adhering to its valid export license.
The United States has already enforced sanctions on China’s ability to acquire advanced semiconductor technology, including artificial intelligence. This action has limited Nvidia and AMD’s entry into their primary market.
Despite the sanctions, Nvidia has stated that it has not experienced any significant impact due to the continued heavy investment by major technology companies in their artificial intelligence endeavors.
However, U.S. chipmakers have been asking for a more lenient approach to the China policy, pressing the government to ease the restrictions imposed.
Advanced Micro Devices (NASDAQ: AMD) Stock Movement
AMD stock soared 10.60% to close at $181.71 on Thursday. The traders had exchanged hands with 96,723,955 (96.72 million) shares compared to the average daily trading volume of 71 million.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
