What happened
Shares of Advanced Micro Devices (NASDAQ:AMD) climbed 23% last month, according to data provided by S&P Global Market Intelligence, after the chipmaker delivered strong third-quarter results and announced a blockbuster acquisition in late October.
So what
AMD's revenue jumped 56% year over year to $2.8 billion, while its net income soared 148% to $390 million, or $0.32 per share. The gains were fueled by robust sales of AMD's highly regarded Ryzen and Radeon processors. "Our business accelerated in the third quarter as strong demand for our PC, gaming, and data center products drove record quarterly revenue," CEO Lisa Su said in a press release.
Advanced Micro Devices' profits are growing rapidly. Image source: Getty Images.
AMD also announced the potentially game-changing acquisition of fellow semiconductor maker Xilinx (NASDAQ:XLNX). AMD says the merger will expand its product portfolio into promising new areas, such as adaptive computing solutions, and thereby boost its total addressable market to a staggering $110 billion. The deal is also expected to immediately add to AMD's earnings and cash flow production when it closes at the end of 2021.
Now what
AMD's success has come in part from its newfound ability to take share from struggling chip giant Intel (NASDAQ:INTC). AMD's processors have achieved a technological performance lead in key markets like gaming, as Intel has suffered costly production delays. AMD's market-share gains appear likely to continue into 2021, so more good times could be in store for the chipmaker's investors in the year ahead.
The Link LonkDecember 06, 2020 at 09:30PM
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Why AMD Stock Surged 23% in November - Motley Fool
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