On Friday, Shares of Advanced Micro Devices, Inc. (NASDAQ: AMD) showed the bullish trend with a higher momentum of 1.57% and ended its trading session at $95.34. The company traded total volume of 144,151,217 shares as contrast to its average volume of 106.20M shares. The company has a market value of $152.12B and about 1.21B shares outstanding.
The Company offered net profit margin of 21.00% while its gross profit margin was 48.50%. ROE was recorded as 56.30% while beta factor was 1.87. The stock, as of recent close, has shown the weekly upbeat performance of 11.48% which was maintained at -33.75% in this year. Advanced Micro Devices (AMD) Get Advanced Micro Devices, Inc. Report and Nvidia (NVDA) – Get NVIDIA Corporation Report pass a crucial test in this month of May.
The two chipmakers have experienced hell on the stock market since the beginning of the year. Worried about global growth, investors have fled tech and semiconductor and microprocessor makers in particular, despite seemingly solid fundamentals.
The reason? A lack of chips to manufacture their products.
This is the case in the automotive sector as well, where manufacturers have had to halt the assembly of certain models for lack of parts. Electronics, IT and other industries have also suffered, as they scramble for the right materials.
This chip crisis is expected to last until at least 2024, industry sources say. However, semiconductor manufacturers did not take advantage of the earlier boom times, thus ending the golden period of 2021.
As for Nvidia shares, the decline is 33.6% since December and 28.4% for the first quarter completed on March 31.
AMD shares are trading at the time of writing at $90.50, down from $143.90 on Dec. 31.
The current Nvidia stock price is $195.33 versus $294.06 on Dec. 31.
Nvidia, AMD and Intel sell graphics processing units and CPUs to gamers.
They are also prominent producers of semiconductors and systems for application in cloud servers, self-driving cars, the metaverse, artificial intelligence and more.
After months of uncertainty, the two companies will publish their quarterly results this month.
AMD kicks off May 3 at the close. Investors will then wait for May 25 to find out how Nvidia performed in the first quarter of its fiscal year 2022.
Analysts predict that AMD will report a substantial increase in profit and revenue, but at a slower pace than in past years. Analysts estimate EPS of $0.91 vs. $0.52 in Q1 FY 2021. Revenue is also expected to grow.
But investors want to know about AMD’s growth plans. The company announced in April the acquisition of Pensando Systems Inc., a provider of networking and security services, for $1.9B.
This transaction is expected to give AMD an advantage in the data center sector, a high-growth market.
“The Pensando team brings world-class expertise and a proven track record of innovation at the chip, software and platform level which expands our ability to offer leadership solutions for our cloud, enterprise and edge customers,” Lisa Su, AMD chair and chief executive officers, said in a press release.
Pensando’s products are already deployed at scale across cloud and enterprise customers, including Goldman Sachs, IBM Cloud, Microsoft Azure and Oracle Cloud.
On Friday, Shares of NVIDIA Corporation (NASDAQ: NVDA) lost -0.90% to $186.75. The stock opened its trade at $187.36 and after floating in a price range of $179.90 to $195.12; the stock grabbed the investor’s attention and traded 63,257,735 shares as compared to its average daily volume of 54.68M shares. The stock’s institutional ownership stands at 66.60%.
NVDA has a market value of $471.86B while its EPS was booked as $3.85 in the last 12 months. The stock has 2.50B shares outstanding. In the profitability analysis, the company has gross profit margin of 64.90% while net profit margin was 36.20%. Beta value of the company was 1.59; beta is used to measure riskiness of the security. Analyst recommendation for this stock stands at 2.00.