Shares of technology companies rose amid big deal news.
Advanced Micro Devices agreed to buy rival chip maker Xilinx in a $35 billion all-stock deal, adding momentum to the consolidation of the semiconductor industry that has only accelerated during the pandemic. AMD also said it expects better-than-anticipated revenue in the final quarter of the year. The company issued guidance of roughly $3 billion of sales in the current quarter, which, like its third-quarter results, came in ahead of Wall Street expectations.
AMD now expects 2020 revenue to grow by approximately 41% compared with 2019, up from prior guidance of 32%, with non-GAAP margins as expected.
After the closing bell, Microsoft reported results that easily topped earnings and sales expectations, as all three of its core segments grew strongly amid demand for cloud services and personal computers during the COVID-19 pandemic.
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(END) Dow Jones Newswires