Advanced Micro Devices Inc (NASDAQ:AMD) shares are trading higher Wednesday, reacting to Oracle’s first-quarter financial results. While Oracle narrowly missed Wall Street’s earnings and revenue estimates, its stock soared due to an overwhelmingly positive outlook for its cloud division, creating a ripple effect for key partners like AMD.
What To Know: Investors shrugged off the slight earnings miss, focusing instead on the massive demand for Oracle Cloud Infrastructure (OCI). Oracle’s management highlighted an “aggressive growth outlook” tied to AI, with remaining performance obligations rocketing 359% to an impressive $455 billion. The company forecasts its Cloud Infrastructure revenue will grow 77% this fiscal year alone.
This growth is a potential indicator of future success for AMD. Oracle’s cloud services are heavily reliant on AMD’s EPYC processors and Instinct AI accelerators to power their infrastructure.
The massive expansion and backlog for OCI directly signal a surge in demand and large-scale orders for AMD’s high-performance chips, potentially boosting investor confidence in AMD’s future revenue streams.
Benzinga Edge Rankings: Reflecting this optimistic forecast, Benzinga Edge rankings underscore AMD’s exceptional Growth score of 94.20.
Price Action: According to data from Benzinga Pro, AMD shares are trading higher by 2.06% to $159.03 Wednesday. The stock has a 52-week high of $186.65 and a 52-week low of $76.48.
Read Also: Cramer Flags Oracle Rally As ‘Strange,’ Says Nvidia And AMD Aren’t Getting Any Love
How To Buy AMD Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Advanced Micro Devices’ case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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