Advanced Micro Devices (AMD, Financial) has raised its revenue guidance for artificial intelligence-related sales to $3.5 billion for the current year, a significant increase from the previous $2 billion estimate. This optimistic outlook was further bolstered by CEO Dr. Lisa Su's confidence in surpassing the new target. Citi analyst Christopher Danely suggests that AMD is likely underestimating its potential, predicting revenues could reach $5 billion this year and $8 billion the next. Microsoft (MSFT) and Meta Platforms (META, Financial) are reportedly the largest customers for AMD's MI300, which commands a high average selling price. AMD's shares experienced a modest uptick following the announcement.
Altria Group (MO, Financial) has authorized a new $1 billion share buyback program, reflecting confidence in its financial strategy despite a slight revenue decline in its latest quarterly report. The tobacco company's adjusted earnings per share met expectations, while revenue fell by 2.2% year-over-year, mainly due to lower sales in smokeable products. However, growth in oral tobacco products partially offset this decline. Altria's guidance for the full year 2024 adjusted profit per share is slightly above estimates, indicating a stable outlook for the company.
Qualcomm (QCOM, Financial) reported strong first-quarter results, but its future outlook is clouded by a loss of market share at Samsung (SSNLF). Despite expectations of gaining share, Qualcomm's guidance for upcoming quarters has been impacted, leading to a slight decrease in its premarket share price. The handset business remains a concern, with potential risks including Huawei's re-entry into the Chinese 5G market. Nonetheless, the global handset market is expected to recover, with artificial intelligence likely to boost demand and average selling prices over the long term.
Okta (OKTA, Financial) announced a workforce reduction of approximately 7%, equating to 400 employees, as part of a restructuring plan. The company expects to incur $24 million in charges, primarily related to severance and benefits, which will be recognized in the fourth quarter. Despite the layoffs, Okta reaffirmed its financial guidance for the fourth quarter and the fiscal year ending January 31, 2024. The cybersecurity firm's stock rose slightly in premarket trading following the news.
Enterprise Products Partners (EPD, Financial) reported a positive fourth quarter, with earnings per share exceeding expectations and revenue showing a year-over-year increase. The company anticipates investing between $3.25 billion and $3.75 billion in growth capital in 2024, with sustaining capital expenditures estimated at around $550 million. These investments will support the maintenance and expansion of Enterprise Products Partners' infrastructure and operations.
Alexandria Real Estate Equities (ARE, Financial) saw its shares rise after announcing a public offering of senior notes in two tranches. The proceeds from this offering are intended for general corporate purposes, including working capital. The notes will be guaranteed by Alexandria Real Estate Equities, L.P., a wholly-owned subsidiary of the company.
Twilio (TWLO, Financial) experienced a premarket stock increase following reports that Bird, a Dutch messaging software startup, is considering a bid for the company. Although it's uncertain whether Bird will proceed with an offer, the news comes after Twilio was targeted by activist investors last year, with some advocating for the company to sell itself.
Boeing (BA, Financial) faces potential customer losses due to recent issues with the Alaska Airlines door incident and delays with the Max 10. However, Latam Airlines (LTMAY) has shown interest in leasing Boeing aircraft, potentially signaling new business opportunities for the aerospace manufacturer.
Following the Federal Reserve's latest comments, which dampened expectations of a March rate cut, stock futures indicated a higher opening on Thursday. Investors are now looking ahead to earnings reports from major tech companies such as Amazon (AMZN, Financial), Apple (AAPL, Financial), and Meta Platforms (META, Financial).
