Find out what’s moving late Tuesday.
The stock market finished mixed on Tuesday, with the Dow Jones Industrial Average (^DJI -0.98%) showing relative strength compared to its market benchmark peers. Losses for the Nasdaq Composite (^IXIC) and the S&P 500 (^GSPC -1.38%) were modest, however, barely putting a dent into July’s big gains.
| INDEX | DAILY PERCENTAGE CHANGE | DAILY POINT CHANGE |
|---|---|---|
| Dow | +0.20% | +71 |
| S&P 500 | (0.27%) | (12) |
| Nasdaq | (0.43%) | (62) |
DATA SOURCE: YAHOO! FINANCE.
After the closing bell, Advanced Micro Devices (AMD -7.01%) reported its latest financial results, and shareholders were generally encouraged by what the semiconductor chip maker said about its business and its future prospects. However, even bigger gains were in store for shareholders in Match Group (MTCH -0.87%), which also released its quarterly financial report. Read on to get the scoop on both stocks and the implications for the broader market.
AMD looks to participate in the AI revolution
Shares of Advanced Micro Devices (AMD) were up 4% after hours on Tuesday. The semiconductor maker reported second-quarter financial results that showed considerable declines from year-ago levels but nevertheless gave investors some reassurance that it won’t cede the artificial intelligence space to its chip-making rivals.
AMD’s financial numbers weren’t pretty. Revenue fell 18% year over year to $5.36 billion. Margins were down precipitously, sending adjusted net income down 44% from year-ago levels to $948 million. That worked out to adjusted earnings of $0.58 per share, and while that was better than some had feared, it nevertheless reflected the cyclical nature of what’s going on with the semiconductor space more broadly.
The biggest problem was AMD’s client segment, which saw sales cut by more than half as demand for PCs was sharply lower. After seeing a big jump in purchases during the early years of the COVID-19 pandemic, AMD is now struggling to adapt to the readjustment back toward secular trends favoring mobile devices over PCs. Yet even there, the chipmaker is optimistic about a bounce from Q1 as new chips and platforms are set to launch later in 2023.
Yet investors focused more on the data-center segment, which held up well and which AMD is positioning to take advantage of generative AI demand. Moreover, the company issued sales guidance of $5.4 billion to $6 billion for Q3, suggesting that AMD’s sequential rebound could continue to gain momentum. That’s not quite the strong message that rival Nvidia (NVDA -4.81%) delivered, but it was still enough to inspire some upward gains for AMD’s stock.
A perfect Match
Elsewhere, shares of Match Group were up almost 11% in after-hours trading. The online dating specialist reported Q2 results that showed some positive signs in its business.
Match Group’s financial numbers were modestly upbeat. Revenue climbed 4% year over year to $830 million. The company reversed a year-earlier loss, posting net income of $137 million. That worked out to earnings of $0.48 per share, and using Match’s preferred metric, adjusted operating income was higher by about 5% to $301 million.
Match emphasized the efforts it’s making to reposition its key Tinder brand to meet the needs of Generation Z, even as it also builds up its other properties. Moreover, the company mentioned plenty of AI-enabled capabilities to address concerns that app users have had about the Match dating experience.
Looking ahead, Match projected Q3 sales of $875 million to $885 million, which would accelerate year-over-year growth to between 8% and 9%. With the potential for double-digit rises in adjusted operating income, investors are getting even more excited about Match’s ability to bounce back fully.
