MSFT - AMD shares climb 5% as Wall Street debates chipmaker's direction

2023-05-08 13:21:05 ET

Advanced Micro Devices ( AMD ) shares climbed almost 5% Monday as investors continued to suss out sentiment around the chipmaker following its recent first-quarter results and moves in the artificial intelligence market.

Activity in AMD ( AMD ) was high, with 54M shares of its stock trading hands by midday. AMD ( AMD ) averages more than 60M shares exchanges on a daily basis.

Last week, AMD ( AMD ) gave a respectable first-quarter earnings report, but saw its shares plunge by 10% on reaction to the company's weaker-than-expected second-quarter outlook, and Chief Executive Lisa Su saying that AMD ( AMD ) still expects to a "mixed" market for sales in the months ahead.

One area that Su said AMD ( AMD ) was continuing to invest in is artificial intelligence, and that AMD ( AMD ) "is in a strong position" for the opportunities presented by AI. Towards the end of the week, AMD ( AMD ) got a boost from reports that Microsoft ( MSFT ) was investing in AMD's ( AMD ) efforts to develop new chips for AI services .

However, by the end of the week, such an arrangement appeared to be off the table, as a Microsoft ( MSFT ) spokesperson said AMD ( AMD ) wasn't involved in Microsoft's ( MSFT ) development of its AI chipsets known as Athena.

AMD's ( AMD ) gains on Monday stood out in what was a day of largely flat performances from semiconductor stocks.

More on semiconductors and AI:

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