AMD Stock Is Rising Wednesday After The Bell: What's Going On?

Advanced Micro Devices Inc (NASDAQ:AMD) shares are trading higher in Wednesday’s after-hours session in sympathy with NVIDIA Corp (NASDAQ:NVDA), which popped on first-quarter earnings issued after the bell.

What Happened With NVDA: Nvidia reported first-quarter revenue of $26.044 billion, beating analyst estimates of $24.646 billion. The company’s top-line results were up 262% on a year-over-year basis and up 18% sequentially.

Nvidia reported first-quarter earnings of $6.12 per share, beating estimates of $5.59 per share, according to data from Benzinga Pro.

Nvidia guided for second-quarter revenue of $28 billion, plus or minus 2%, versus estimates of $26.64 billion. GAAP and non-GAAP gross margins are expected to be 74.8% and 75.5%, respectively, plus or minus 50 basis points.

“The next industrial revolution has begun — companies and countries are partnering with NVIDIA to shift the trillion-dollar traditional data centers to accelerated computing and build a new type of data center — AI factories — to produce a new commodity: artificial intelligence,” said Jensen Huang, founder and CEO of Nvidia.

“AI will bring significant productivity gains to nearly every industry and help companies be more cost- and energy-efficient, while expanding revenue opportunities.”

Nvidia also announced a 10-for-1 forward stock split, effective June 7, and increased its dividend 150% to 1 cent per share on a post-split basis.

Nvidia’s management team will hold a conference call to discuss its quarterly results at 5 p.m. ET. Management commentary is likely to influence price action in Nvidia and related names one way or the other. Nvidia and AMD are both chip giants competing in the high-growth data center and AI markets.

Everything You Need To Know: Nvidia Reports Beat-And-Raise Q1, Announces 150% Dividend Hike, 10-For-1 Stock Split

AMD Price Action: AMD shares were up 1.40% after hours at $167.84 at the time of publication, according to Benzinga Pro.

Photo: Courtesy of AMD.