Advanced Micro Devices shares rose on Nov 11 after CoreWeave's Q3 results lifted semiconductor stocks. A UBS report on server CPU shipments added to the move.
Advanced Micro Devices stock was up 7.9% through 12:20 p.m. ET on Wednesday. A strong earnings report from AI cloud provider CoreWeave on Tuesday night is helping lift chip stocks, amid a positive outlook for future sales to AI data centers.
CoreWeave's results point to bigger chip spending
CoreWeave lost $1.27 per share on $3.66 billion in revenue in its Q3 report, a smaller loss and larger revenue than analysts forecast. The company also raised its full-year 2026 revenue guidance to a range of $13.0 billion to $13.3 billion.
For AMD, the key detail is spending. CoreWeave promised to spend $37 billion to $39 billion on capital investment, more than expected. According to the source, the more CoreWeave spends, the more it will spend on AMD CPU chips for its data centers.
UBS reports rising server CPU shipments
AMD also drew support from a UBS report released Wednesday. It notes that server CPU shipments jumped 31% year over year in Q3.
UBS analyst Timothy Arcuri puts AMD's CPU market share at about 28.4%, holding steady, while Intel's share fell by 240 basis points. Arcuri also believes CPU prices are rising, which would mean more profit for AMD.
UBS sees CPU sales reaching $210 billion by 2030
Looking further out, the UBS analyst predicts CPU sales could hit $210 billion by 2030. If AMD keeps its market share, that would mean nearly $60 billion in CPU sales for the company alone.
At 110x earnings, AMD stock may not look cheap right now, according to the source.
Source: Fool
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