AMD President and CEO Lisa Su speaks during the AMD event at CES in Las Vegas on January 6, 2020.

Bridget Bennett | Bloomberg | Getty Images

Advanced Micro Devices Shares rose as much as 3% in extended trading Tuesday after the chip maker reported quarterly earnings and guidance that failed to meet Wall Street expectations.

Here’s how the company did:

  • gains: 67 cents a share, adjusted, versus 68 cents a share, as expected by analysts, according to Refinitiv.
  • he won: $5.57 billion, versus the $5.62 billion analysts had expected, according to Refinitiv.

Overall, AMD’s revenue grew 29% year-over-year in its fiscal third quarter, which ended September 24, according to the statement. Net income fell 93% to $66 million, primarily due to AMD’s $49 billion acquisition in February of Xilinx, a chip maker called Field Programmable Gateway Arrays.

On October 6, AMD released preliminary results for its fiscal third quarter that came late in its guidance in August, due to fewer chip shipments due to a weaker-than-expected PC market. The stock fell nearly 14 percent, its biggest drop in a single trading session since March 2020.

In terms of guidance, AMD said it expects $23.50 billion in full-year revenue, down from the $26.3 billion the company had forecast in August. Analysts polled by Refinitiv expected $23.88 billion. The company trimmed its adjusted gross margin forecast to 52% from 54% in August.

AMD said its data center segment generated $1.61 billion in revenue in the fiscal third quarter, up 45% and just below the StreetAccount consensus of $1.64 billion. The unit includes contributions from Xilinx and Pensando, a distributed computing startup, which cost AMD $1.9 billion in the acquisition that completed in May.

The chip maker has seen strong demand for shipments of its server chips codenamed Genoa. AMD plans to release Epyc data center chips on November 10.

Lisa Su, CEO of AMD, said that cloud revenue more than doubled and increased sequentially with the previous quarter, while revenue from server makers targeting large companies declined sequentially.

She said some companies have slowed their purchases due to macroeconomic uncertainty.

The data center business “looks good for now at least, and a little better than what’s going on Intel Corporation, Stacy Rasgon, chief semiconductor analyst at Bernstein, said in an interview on CNBC’s “Closing Bell: Overtime” after AMD announced its findings. From an Intel report where Intel called the market downturn in the fourth quarter. Perhaps that is why the stock is soaring now. The evidence itself is very weak, but it appears to be isolated from computers. ”

The gaming segment generated $1.63 billion in profits. That was up about 14% and in line with the $1.63 billion consensus of analysts polled by StreetAccount. The company promoted healthy demand for console chips as holidays approach Microsoft And the Sony.

The embedded portion that includes some Xilinx sales generated $1.30 billion, up from $79 million in the last year’s quarter and in line with the StreetAccount consensus of $1.30 billion.

AMD’s customer unit, which the chipmaker warned about in October, generated $1.02 billion in revenue. That was down nearly 40% but well above the StreetAccount consensus of $1.17 billion. Four days after AMD announced preliminary results, technology industry researcher Gartner said PC shipments in the third quarter fell 19.5%, the largest decline the company has seen since it began tracking the market in the mid-1990s. During the quarter, AMD announced its Ryzen 7000 chips for desktop computers, and AMD indicated positive product reviews.

The four sectors generated slightly more returns than AMD expected in its October warning.

Despite the after-hours volatility, AMD stock is down 58% so far this year, while the S&P 500 is down 19% over the same period.

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