Advanced Micro Devices Stock Rose after Falling in May 2017



AMD stock rose 12.7% last week

Shares of semiconductor (SMH) company Advanced Micro Devices (AMD) rose 12.7% last week, which ended June 9, 2017, to close at $12.28. AMD stock has been volatile over the last few months. The stock rose after AMD launched Ryzen in 1Q17 and fell recently after poor guidance following investment bank Goldman Sachs’s (GS) downgrade of the stock.

However, at Apple’s (AAPL) 2017 Worldwide Developers Conference (or WWDC), it was revealed that AMD’s Vega GPU (graphics processing unit) would be part of Apple’s products, which positively impacted AMD stock 3.0%.

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AMD optimistic about its graphics segment

AMD believes its CG (Computing and Graphics) segment will drive sales in fiscal 2017 and fiscal 2018. AMD will reportedly launch several products at competitive prices in this segment. As you can see in the above graph, revenue from AMD’s CG segment rose to $593.0 million in 1Q17, a 29.0% rise YoY (year-over-year).

The CG business is AMD’s most important segment as it accounts for 60.0% of its total revenue and has seen double-digit growth in the trailing 12-month period. Peer companies Intel (INTC) and Nvidia (NVDA) saw their computing and graphics business segment revenues fall 12.0% and 24.0%, respectively, in 1Q17.

Strong PC (personal computer) sales in 2017 are likely to drive demand for CPUs (central processing units) and GPUs after the PC market experienced a fall in shipments in 2015 and 2016.


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