Why AMD stock price rose again today

advanced micro devices (AMD 5.25%) Friday marked another day of strong gains in daily trading. Shares of the semiconductor company ended the session up 5.3%, according to data from S&P Global Market Intelligence.

There was no business-related news for AMD, but the stock surged with the latest bullish indicators on AI demand and growth opportunities. dell It released its fourth-quarter report after the market closed on Thursday, and the results sparked another round of bullish momentum for artificial intelligence (AI) stocks.

Dell’s fourth-quarter earnings are the latest catalyst for strength in AI stocks.

If Wall Street was looking for another reason to be bullish on AI stocks, Dell’s fourth quarter report and guidance appears to have delivered. The company reported non-GAAP (adjusted) earnings of $2.20 per share on revenue of $22.3 billion, which beat average analyst estimates of $1.72 per share in earnings and $22.15 billion in revenue. Moreover, the company said demand for its AI server products is strong and it expects this catalyst to deliver strong performance through 2025.

Dell shares closed Friday trading up 31.6%, with the stock’s surge having a ripple effect on the top AI player’s valuation. AMD stock is currently up 37.5% in 2024 trading and up 158% over the past year.

What’s next for AMD stock?

AMD stock has had a surprising rally thanks to excitement about the company’s opportunities in the AI ​​space. The current stock price is trading at 55.7 times this year’s expected profit and 37 times next year’s expected profit.

AMD PE Ratio (Forward) data from YCharts.

AMD’s interim guidance calls for revenue of approximately $5.4 billion in the first quarter of this year. Sales are expected to be roughly flat year-over-year during the period. Unlike Nvidia, AMD has not yet shown explosive growth in sales and profits thanks to sales of artificial intelligence (AI) processors, but the market is optimistic that growth will accelerate in the near future.