Advanced Micro Devices NASDAQ: The current quarter was solid, and guidance also beat consensus estimates, both on the back of strong Ryzen demand.

AMD data by YCharts. Lisa Su stated the following about the results:.

We achieved 18 percent year-over-year revenue growth driven by strong demand for our high performance Ryzen CPUs as well as graphics processors. We are positioned for solid revenue growth and margin expansion opportunities across the business in the year ahead as we bring innovation, performance, and choice to an expanding set of markets.

The revenue growth was expected to be driven by the demand and hype for Ryzen, which appears to have been the case in the first quarter.

AMD expects its new Vega GPU architecture to launch in Q2 along with its x86 server CPU Naples. The latter is especially interesting as it represents a significant challenge to Intel NASDAQ: INTC in the server space and its line of Xeon processors.

Naples had the edge in many aspects, but questions remain about exactly how performance will shape up and how much staying power the product will have once Intel inevitably fires back.

AMD Stock tanking afterhours | [H]ard|Forum

This is a market with immense potential for AMD and should be watched closely by investors in both AMD and INTC.

It is quite understandable that the market has extremely high expectations of AMD, and beating guidance estimates isn't enough to send it higher after an earnings report. With that said, we've seen this movie before. I wrote an article on AMD back in September as part of my Buy on the Drop? That article can be read here. I think this earnings report demonstrated that the growth narrative is still very much on track, and investors who are still behind AMD's product offerings should pay little mind to the short-term price movements of the stock.

Naples has good disruption potential in the server space, Ryzen is selling well in the desktop CPU market, and the company's renewed GPU offerings are keeping pace with Nvidia NASDAQ: The label of medium-risk, high-reward still applies as AMD have tremendous upside potential if it can overcome the risks of competing with Intel and Nvidia while also dealing with its debt load.

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Summary Advanced Micro Devices reported first quarter earnings after the close Monday. I continue to see AMD as a medium-risk, high-reward play.

AMD : Summary for Advanced Micro Devices, Inc. - Yahoo Finance

Lisa Su stated the following about the results: Investing Ideas , Long Ideas , Technology , Semiconductor - Broad Line. Want to share your opinion on this article? Disagree with this article? To report a factual error in this article, click here.

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