AMD maintains guidance amid coronavirus scare, stock moves higher - MarketWatch


Advanced Micro Devices Inc. AMD, -3.99% said Thursday afternoon that it will maintain its revenue guidance for the current quarter despite the spread of COVID-19, though admitted that sales will likely come in toward the low end of its forecast range. Near the end of a presentation for financial analysts Thursday afternoon, executives for the chip maker said that its supply chain is almost back to normal after China extended the Lunar New Year holiday because of the spreading virus. "Based on what we see today, we're actually back to our normal supply capacity," AMD Chief Executive Lisa Su said, while admitting that demand in China had taken a hit. In a related news release, AMD stated, "AMD expects the impact from COVID-19 in the first quarter to be modest, potentially resulting in revenue coming in at the lower end of the guidance of approximately $1.8 billion, plus or minus $50 million. Full year 2020 financial guidance remains unchanged." In the analysts' day session, AMD detailed plans for a 20% compound annual growth rate that boosted shares; the stock received another jolt after the guidance discussion. AMD's stock was up more than 5% in after-hours trading following the end of the presentation.

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