Advanced Micro Devices
AMD's shares have been a major winner over the course of this bull market (and the last one), as it overtook Intel
Inside the Numbers
In Q1, AMD reported $1.13 in earnings per share which were well above expectations of $0.91 per share. Revenue came in at $5.9 billion which also topped expectations of $5 billion in revenue. This was a 117% in earnings, while revenue increased by 71%.
However, the revenue figure is inflated due to the company's acquisition of network equipment stock, Xilinx. Excluding Xilinx revenue, AMD sales were up 55%. The company attributed its beat to strong sales of server chips for data centers.
Additionally, each of its segments grew by a double-digit rate with its new Epyc server processor revenue doubling for the third straight quarter. Another source of strength for the stock was the company's strong guidance. For 2022, it expects $26.3 billion in revenue, a 60% gain, which was above its previous guidance of $21.5 billion. For Q2, it expects $6.5 billion in revenue, a 69% increase, and above expectations of $5.1 billion.
The decline in AMD's share price has led to valuations becoming increasingly attractive. The company has a forward P/E of 19.8 which is only slightly above the market average. However, the company has a much higher growth rate and profit margins than the average stock.