Advanced Micro Device’s (NASDAQ: AMD) stock slipped by more than 3% Friday morning, following a strong rally on Thursday on the heels of NVIDIA Corp’s (NASDAQ: NVDA) earnings report. Super Micro Computer (NASDAQ: SMCI), another high-flying chip stock, dropped by more than 10% Friday after announcing a private offering of convertible senior notes.
AMD’s stock went up more than 10% from its open price on Wednesday to its close price on Thursday, going from around $163 a share to $183 a share as bullish investors rushed into the stock after NVIDIA’s strong earnings report. Many investors believe that growing demand for AI will continue to boost revenue and earnings for chip companies like NVIDIA and AMD.
Traders who made profits by going long AMD ahead of NVIDIA’s report may be taking profits on Friday. Chip names were largely mixed on Friday morning, with NVIDIA and Arm Holdings (NASDAQ: ARM) trading slightly higher, while AMD and Super Micro Computer traded lower.
AMD is one of NVIDIA’s main competitors and has also shown strong revenue growth throughout the last year powered by the AI boom. AMD is scheduled to report its Q1 earnings on April 30, 2024, a few weeks before NVIDIA’s next report.
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