AMD Shares Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of chip maker Advanced Micro Devices (NYS: AMD) surged more than 13% on higher-than-average volume after reporting surprisingly strong third-quarter results. AMD also forecast fourth-quarter revenue above estimates.

So what: Revenue increased 4% year over year to $1.69 billion while adjusted profits came in at $0.15 per share, even with last year's Q3. Analysts had been calling for just $1.65 billion in revenue and $0.10 per share of earnings. AMD tempered expectations late last month when it disclosed production problems at its main supplier, GlobalFoundries.

Now what: More impressive, I'd say, is that AMD claimed to take laptop market share from its main rival, Intel (NAS: INTC) , in forecasting a 1% to 5% sequential revenue increase for next quarter -- or $1.77 billion in a best-case scenario. Analysts had been projecting $1.71 billion in Q4. Do you see AMD meeting or beating that target? Would you buy shares at current prices? Please weigh in using the comments box below.

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At the time thisarticle was published Fool contributor Tim Beyers is a member of theMotley Fool Rule Breakersstock-picking team. He didn't own shares in any of the companies mentioned at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.The Motley Fool owns shares of Intel. Motley Fool newsletter services have recommended buying shares of Intel. Motley Fool newsletter services have recommended creating a bull call spread position in Intel. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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