Advanced Micro Devices slips, but semiconductors see broad-based rally
jiefeng jiang

Advanced Micro Devices (NASDAQ:AMD) slipped on Wednesday after it issued weak third-quarter guidance, but the larger semiconductor sector saw broad-based gains.
Following the close of trading, AMD (AMD) said that for its fiscal third quarter it expects to report revenue between $6.5B and $6.9B, while analysts were expecting $6.81B. Looking to the full-year, AMD (AMD) said revenue is likely to be between $26B and $26.6B.
That outlook took some of the shine off what was a strong second-quarter report for the semiconductor giant.
For the period ending June 25, AMD (AMD) said it earned $1.05 a share on $6.55B in revenue, aided by 83% growth in data center sales.
Several Wall Street analysts praised the company's results, including Morgan Stanley analyst Joseph Moore, who said the figures and outlook were "impressive," citing the current environment.
"We continue to like the opportunity here, though we can understand some disappointment," Moore wrote in a note to clients, adding that the "decelerating momentum" was obvious and "mostly discounted."
Moore added that AMD (AMD) is likely to continue benefiting from Intel's (NASDAQ:INTC) "numerous delays," despite the tough market conditions, citing server momentum and the CPU market. Intel (INTC) shares rose 1% in late trading on Wednesday.
Nvidia (NASDAQ:NVDA), which competes with AMD (AMD), climbed 1.5% shortly before the close of trading, while other semiconductor companies saw healthier increases, including 3% gains for Analog Devices (ADI), Micron Technology (MU) and Texas Instruments (TXN).
Other semiconductors joined in on the rally, including ON Semiconductor (ON), Broadcom (AVGO) and Qualcomm (QCOM).
Smartphone-linked stocks such as Qorvo (QRVO) and Skyworks Solutions (NASDAQ:SWKS) rose nearly 5%.
Qorvo (QRVO) is slated to report fiscal first-quarter results after the close of trading, while Skyworks (SWKS) reports tomorrow.
Last month, Wedbush Securities analyst Matt Bryson said AMD (AMD) was his top pick in the semiconductor space.