AMD shares rose on November 12 after Nvidia CEO Jensen Huang resigned and an analyst upgraded the chipmaker. Coverage points to AMD's data-center growth as the backing for investor interest, while noting that customers will not switch suppliers overnight.
Advanced Micro Devices shares jumped 5.27% to $582.05 on November 12 as investors reassessed the competitive landscape after Huang left Nvidia. The Motley Fool, reporting at midday, said AMD surged 6.30% following an analyst upgrade.
William Blair analyst Sebastien Naji upgraded AMD to Outperform, citing Nvidia's leadership uncertainty and Intel's supply constraints as potential opportunities for AMD.
Huang steps down at Nvidia
Huang's resignation is effective immediately, with longtime CFO Colette Kress stepping in as interim CEO. Nvidia shares were down 5.02% at the time of the Motley Fool's report.
The Motley Fool wrote that Huang's departure could create opportunities for competitors like AMD to capture market share. However, it added that Nvidia's entrenched software ecosystem, established customer relationships and technological advantages remain formidable.
Wall Street still edged higher. As of 11:30 a.m. ET, the Dow Jones Industrial Average gained 0.29% to 52,641, while the S&P 500 advanced 0.19% to 7,634.
AMD's data-center revenue grew 97%
AMD's case extends beyond Nvidia's turmoil. The company reported third-quarter revenue of $13.38 billion, up 45% year over year. Non-GAAP earnings per share increased 74% to $2.09, and data-center revenue grew 97%, driven by demand for Instinct GPUs and EPYC server processors.
Management expects fourth-quarter revenue of approximately $17 billion, plus or minus $300 million. CEO Lisa Su also expects overall revenue growth to exceed 80% in 2027.
Switching suppliers takes time
Coinpedia noted that the semiconductor market will not change overnight. Customers must qualify alternative processors, adapt their software infrastructure and establish new supply arrangements before shifting large workloads.
On the chart, the immediate resistance zone sits between $650 and $680, and $550 is the first support area.
Sources: The Motley Fool, Coinpedia
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