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AMD Breaks Share Price Record Five Days in a Row Following Its Stellar Quarter

Lisa Su
(Image credit: AMD)

AMD's stock has closed at record-breaking prices for the last five days following its most recent earnings report, which revealed that quarterly sales reached an all-time high of $3.85 billion in 2Q21, and chief executive Lisa Su's commitment to shipping next-gen processors heading into 2022 despite the ongoing chip shortage.

Yahoo Finance data showed that AMD's stock closed at a record $97.93 on July 28, and set another record at $112.56 on August 3. The price has continued to rise so far today: It peaked at $118.82 this morning and settled at roughly $119 at the time of writing. The tool still marks the stock as undervalued, too, and predicts strong long-term performance.

The market appeared to be responding to AMD's strong earnings in the second quarter. The highlight was the revelation that its sales had nearly doubled year-over-year despite the challenges imposed by the coronavirus pandemic and the global chip shortage that's left many companies unable to satisfy demand for their wares.

AMD's rising share price could also have benefitted from Intel's repeated warnings that the consumer chip shortage would continue into the third quarter. The company said in its most recent earnings call that margins have suffered as supply chain costs have risen because it hasn't passed those increases on to consumers.

Intel continues to lead in terms of market share, especially when it comes to consumer processors, but AMD has eaten away at the high-value data center business with its EPYC lineup. That increased competition might persuade some investors that AMD can truly challenge Intel's dominance in at least one sector.

MarketWatch noted that investors could also have been responding to a Bloomberg report claiming UK regulators would block Nvidia's acquisition of Arm over national security concerns. That could make it more difficult for the company to extend its lead in the graphics market to the other sectors in which it competes with AMD.

  • xedrac
    Just imagine what their quarter would have looked like if they actually had product to sell...
    Reply
  • waltc3
    xedrac said:
    Just imagine what their quarter would have looked like if they actually had product to sell...

    Well, they didn't turn those numbers by not selling anything...;) But I know what you mean, and it will be nice when GPU production returns to normal. Last few days the AMD Store US has been stocked with the big Zen 3 CPUs (all at MSRP) so it appears that the CPU shortage, anyway, is abating. The whole GPU shortage thing has been baffling.
    Reply
  • thisisaname
    waltc3 said:
    Well, they didn't turn those numbers by not selling anything...;) But I know what you mean, and it will be nice when GPU production returns to normal. Last few days the AMD Store US has been stocked with the big Zen 3 CPUs (all at MSRP) so it appears that the CPU shortage, anyway, is abating. The whole GPU shortage thing has been baffling.

    I think it can be summed up in one word "Mining"
    Reply
  • hannibal
    No it means that they make good result from cpus! They don`t make gpus because cpus produce more money to amd! Do you make gpus that gives very little income or do you make cpus that gives high income and sell like hotcakes! I think that amd djay done the right choise of putting more production capasity to cpus!
    Reply
  • TerryLaze
    hannibal said:
    No it means that they make good result from cpus! They don`t make gpus because cpus produce more money to amd! Do you make gpus that gives very little income or do you make cpus that gives high income and sell like hotcakes! I think that amd djay done the right choise of putting more production capasity to cpus!
    No you make APUs that take away wafers from both GPU and CPU and are being sold at almost cost because that's the only steady and guaranteed income.
    https://forums.tomshardware.com/threads/sony-has-already-secured-22-million-chips-for-the-playstation-5.3717162/
    Reply
  • hannibal
    Those too. Laptop apus are most likely the second most important product gategory after datacenter chips!
    Reply