AMD Shares Rally in Pre-market Trading in Response to Nvidia’s Strong Earnings Report

Shares of Advanced Micro Devices, Inc. AMD saw a surge in premarket trading on Thursday, likely due to investor excitement following the release of Nvidia’s Q1 earnings report on Wednesday. Nvidia exceeded estimates with both earnings and revenue, and issued strong guidance for Q2 revenue as well.

Nvidia attributed much of its success to the strength of its generational artificial intelligence (AI) products and high demand for its data center family of products. Because AMD also has a presence in this sector, investors may believe that similarly strong results could be expected from that company as well.

In premarket trading, AMD shares jumped 8.98% to $117.99, according to Benzinga Pro data.

Given the data center demand and success of Nvidia, it will be interesting to see whether AMD is able to replicate these results. Investors may be looking to buy into AMD in anticipation of this possibility.

This news could also prompt investors to take a closer look at AMD and consider whether the company is a worthwhile investment opportunity.

Overall, this report demonstrates the significant influence that an earnings report from a key tech player can have on the stock market, as investors scramble to take advantage of any potential benefits.

It remains to be seen whether these gains will continue in the long term, but for now, investors seem cautiously optimistic about both Nvidia and AMD.

Credit: benzinga.com

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