Shares of Advanced Micro Devices (AMD) - Get Report aren't having a good day, down 10% to $12.77 in early Wednesday trading. AMD stock is being smacked down despite beating on earnings and revenue expectations.
After rallying over the past few weeks, it was a "disappointing quarter," according to TheStreet's Jim Cramer. Speaking on CNBC's "Mad Dash" segment, he said analysts desperately wanted some good news from management, but they didn't seem to have much to offer.
AMD management said, "there's some leveling off of the cryptocurrency demand." Now, that doesn't help, as cryptocurrency is mined with the graphic cards made by AMD and Nvidia (NVDA) - Get Report , Cramer pointed out. AMD also said it's experiencing some leveling off in blockchain demand. Is this just AMD specific? Cramer posed the question after hearing how strong demand for blockchain is for International Business Machines (IBM) - Get Report .
Maybe Advanced Micro Devices is just having issues of its own. Even though the company is doing a lot of things right, it's also going head-to-head with two great American companies right now, in Nvidia and Intel Corporation (INTC) - Get Report .
- AMD Is Paying the Price for Not Delivering 'Near Perfect' Earnings
- AMD Stock Plunges on Mediocre Guidance
AMD's results may weigh on Nvidia and Intel, but it shouldn't because these companies are doing better than Advanced Micro Devices, he reasoned. The company guided for a quarter-over-quarter revenue decline of 12% to 18% next quarter and that's not helping investors feel any better.
However, AMD did raise its full-year sales growth outlook from mid-to-high teens to above 20%.
Do you know the difference between Bitcoin and Ethereum Technology?
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At the time of publication, Cramer's Action Alerts PLUS had a position in NVDA.