NVIDIA Corp (NASDAQ:NVDA) shares are trading higher in Tuesday's after-hours session in sympathy with Advanced Micro Devices, Inc. (NASDAQ:AMD), which got a lift from strong second-quarter earnings results.
What Happened With AMD: AMD reported second-quarter revenue of $5.835 billion, beating analyst estimates of $5.724 billion. The chipmaker reported adjusted earnings of 69 cents per share, beating analyst estimates of 68 cents per share.
"We delivered strong revenue and earnings growth in the second quarter driven by record Data Center segment revenue. Our AI business continued accelerating and we are well positioned to deliver strong revenue growth in the second half of the year led by demand for Instinct, EPYC and Ryzen processors," said Lisa Su, chair and CEO of AMD.
"The rapid advances in generative AI are driving demand for more compute in every market, creating significant growth opportunities as we deliver leadership AI solutions across our business."
AMD said it expects third-quarter revenue to be between $6.4 billion and $7 billion versus estimates of $6.61 billion. The company anticipates third-quarter gross margin of approximately 53.5%. AMD also said on its conference call that it expects GPU revenue to exceed $4.5 billion this year, up from its prior forecast of approximately $4 billion.
AMD shares were up more than 7% in extended trading at last check.
Related Link: AMD Shares Rebound After Chipmaker Posts Q2 Beat, Guidance Tops Expectations: CEO Lisa Su Says AI Business Accelerating
Why It Matters: Nvidia has been the biggest beneficiary of the AI boom, but the stock sold off in recent weeks as investors braced for big tech earnings. AMD's upside surprise and commentary surrounding data center and AI strength appear to be spurring a bounce in Nvidia shares after the bell.
Nvidia is not due to report earnings for the second quarter until late August. The company is expected to report earnings of 64 cents per share and revenue of $28.465 billion. Nvidia has beat analyst estimates on the top and bottom lines in six consecutive quarters, according to Benzinga Pro data.
NVDA Price Action: Nvidia shares initially traded down below the $101 level in extended trading before staging a sharp reversal. The stock was up 2.88% in after-hours, trading at $106.72 at the time of publication, according to price data from Benzinga Pro.
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