CNBC’s Jim Cramer pounded the table modern micro devices after stocks fell on Tuesday.
“I think AMD still has a lot of advantages. You are effectively getting today’s amazing, great quarter for free.”Bad money“said the host.” At these levels, I think the stock is a bargain. “
The comments came after the stock fell 4%, despite the semiconductor maker reporting big top and bottom line beats in its third quarter report that morning.
AMD had sales of $ 2.80 billion, up nearly 56% year over year, and net income of $ 390 million, more than three times last year.
The company’s share price fell after the company increased its competition Intel In the data center chip market, $ 35 billion was paid out to Xilinx, a maker of platforms for adaptive processing platforms, as part of an all-stock deal. Xilinx stock gained more than 8% to close at $ 124.35 on Tuesday.
“These are people who are selling AMD and buying Xilinx to fill the gap between trading Xilinx and AMD’s willingness to pay, and one day it will close,” Cramer said. “Others dumped AMD because they didn’t want to wait a year and a half for this deal to close as the company gets regulatory approvals around the world, including China. Still others, I believe, doubted it [CEO Lisa] Sus leadership. “
AMD said earlier this year that data center revenue could represent 30% of its business over the next three years. The data center accounted for 15% of sales last year.
“Lisa Su is trying to build a semiconductor titan whose goals go well beyond the PC, gaming and the data center,” he said. “I’ll say bank with her and be grateful that you can come along.”
Disclosure: Cramer’s charitable foundation owns shares in Advanced Micro Devices.