What occurred

Shares of Superior Micro Units (AMD -2.51%) climbed 14% this previous week, in accordance with information from S&P International Market Intelligence. Encouraging indicators that the semiconductor trade’s stoop may very well be nearing its finish and extra proof of AMD’s market share good points drove buyers to bid up the worth of the favored tech inventory.

So what

AMD’s shareholders breathed sighs of reduction when the chipmaker launched its fourth-quarter earnings report after the market shut on Tuesday. Going into the week, buyers had been fearful that AMD’s outcomes might mimic these of Intel (INTC 0.43%). The chip large reported dismal declines in gross sales and income late final month. Intel additionally warned of extra laborious instances forward for semiconductor producers.

AMD, nevertheless, fared a lot better than its archnemesis. AMD’s income jumped 16% 12 months over 12 months to $5.6 billion, bolstered by sturdy development in its information middle enterprise. AMD’s acquisition of adaptive computing chief Xilinx additionally contributed to its development.

AMD’s information middle income surged 42% to $1.7 billion, fueled by gross sales of its high-performance EPYC processors. Intel’s information middle and AI section income, in the meantime, plunged 33% to $4.3 billion. Intel is clearly taking share from its bigger rival on this key market — a pattern that AMD CEO Lisa Su expects to proceed within the coming 12 months.

Higher nonetheless, AMD’s buy of Xilinx offered it with a number one portfolio of adaptive computing merchandise, which customers can reconfigure to optimize efficiency for his or her specific wants. AMD studies income for these merchandise in its embedded section, which noticed gross sales develop to $1.4 billion within the fourth quarter.

Now what

Trying forward, Su expects the downturn within the private pc (PC) market, which has weighed on the chipmaker’s outcomes, to start to abate within the second quarter of 2023. “First quarter needs to be the underside for us in PCs after which develop from there into the second quarter after which into the second half,” Su mentioned.

A rebound within the PC market and continued development in AMD’s information middle and embedded segments might drive extra good points for buyers within the weeks and months forward.