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Advanced Micro Devices (NASDAQ:AMD) shares fell sharply on Friday, declining more than 10% from their peak on Wednesday, as tech stocks sold-off sharply for the second day in a row on inflation fears and a hawkish Federal Reserve.
Shortly before 2 p.m. EST, AMD shares were down more than 8% to $115.36, after hitting $132.60 on Wednesday, following a strong earnings report last week. More than 92 million shares had changed hands, compared to an average daily volume of just over 69 million shares.
Nvidia (NASDAQ:NVDA), which reports earnings next week, also saw its shares fall in sympathy, losing more than 5% to $244.31 in mid-Friday trade.
This week, AMD received clearance to buy Xilinx (NASDAQ:XLNX) after it received all the necessary regulatory approvals, including from the U.S.
Earlier this month, AMD said it earned $0.80 per share on $4.8 billion in revenue for the quarter ended in December, which topped analysts’ estimates for a profit of $0.76 a share on sales of $4.52 billion.
AMD (AMD) also said its gross margins, a closely watched measure for semiconductor companies, reached 50% in the quarter, up 5% year-over-year and 2% sequentially, driven by a “richer product mix.”
For its first quarter, AMD (AMD) said it expects revenue to be between $4.9 billion and $5.1 billion, up roughly 45% year-over-year and 4% sequentially, with non-GAAP gross margins of 50.5%. For all of 2022, AMD expects sales to be $21.5 billion, a jump of 31% over 2021, with non-GAAP gross margins of approximately 51%.
Wedbush Securities analyst Matt Bryson said AMD’s results, and management commentary, show a company that provided “zero red flags” for investors and is staving off its top rival, Intel (NASDAQ:INTC).