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Chip Stocks Rally On Strong Earnings From AMD, Others

Chip stocks jumped on Thursday after a series of positive earnings reports from the likes of Advanced Micro Devices (AMD), STMicroelectronics (STM) and Xilinx (XLNX).

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The Philadelphia Semiconductor Index, known as SOX, climbed 2.1% on the stock market today. The iShares PHLX Semiconductor ETF (SOXX), which tracks the SOX, rose 2% and is on pace for its first up day after six days of decline.

Among the top gainers in the sector Thursday were two chipmakers on the IBD 50 list of top-performing growth stocks: Nvidia (NVDA) and Micron Technology (MU).

Nvidia surged 4% to close at 225.22. Micron jumped 5.3% to 50.14.


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STMicro was up 0.8% to close at 22.17. It rose 3.2% on Wednesday after reporting upbeat first-quarter earnings earlier in the day.

One of the biggest moves came from AMD, which rocketed more than 13% to 11 after posting better-than-expected first-quarter results late Wednesday.

AMD Chief Executive Lisa Su appeared on CNBC's "Squawk on the Street" Thursday morning where she discussed the company's first quarter and its strategy moving forward.

"We're very happy with how the quarter went and how the year started. For us, it's about our long-term strategy paying off," Su said on the broadcast. "We saw a nice ramp across our product lines — across our PC, gaming and data center product lines."

Xilinx Climbs Post-Earnings

Xilinx rose 1.7% to close at 64.72 after reporting solid fiscal fourth-quarter results on Wednesday.

San Jose, Calif.-based Xilinx earned 64 cents a share, up 12% year over year, on sales of $673 million, up 10% in the March quarter. Analysts expected 65 cents and $650 million.

"With our three-pronged strategy of data center first, accelerating growth in core markets and driving adaptive compute, Xilinx is well positioned to achieve our long-term growth objectives while delivering shareholder value," Xilinx Chief Executive Victor Peng said in a news release.

Xilinx makes programmable chips for aerospace and defense, communications, industrial, automotive, broadcast and consumer markets.

The company's guidance for the current quarter implied earnings per share of 74 cents, vs. consensus expectations of 71 cents.

Xilinx expects sales of $675 million in the June quarter, based on the midpoint of its guidance. That would be a 10% increase year over year.

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