Why Advanced Micro Devices (AMD) Stock Is Spiking After Hours

NEW YORK (TheStreet) -- Advanced Micro Devices (AMD) stock is gaining in extended trading after the company reported a better-than-expected first quarter.

After the bell, shares added 3.3% to $3.81.

Over the three months to March, the chipmaker recorded break-even earnings, in line with analysts' estimates, and revenue 28.4% higher year over year to $1.4 billion. Analysts surveyed by Thomson Reuters had forecast revenue of $1.34 billion.

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TheStreet Ratings team rates ADVANCED MICRO DEVICES as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate ADVANCED MICRO DEVICES (AMD) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."

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