Chipmaker Advanced Micro Devices (AMD) late Tuesday beat Wall Street’s targets for the third quarter but missed with its outlook for the current period. AMD stock fell in extended trading.
The Santa Clara, Calif.-based company earned an adjusted 70 cents a share on sales of $5.8 billion in the September quarter. Analysts polled by FactSet had expected AMD earnings of 68 cents a share on sales of $5.7 billion. In the year-earlier period, AMD earned 67 cents a share on sales of $5.57 billion.
Heading into the Q3 report, AMD had posted four straight quarters of declining earnings on a year-over-year basis. Sales had dropped for two straight quarters amid a downturn in demand for personal computers and traditional servers.
For the fourth quarter, AMD expects to generate sales of $6.1 billion, up 9% from the same period last year. However, analysts were looking for Q4 sales of $6.39 billion.
AMD Stock Falls After Report
In after-hours trading on the stock market today, AMD stock dropped 4.5% to 94.10. During the regular session Tuesday, AMD stock climbed 2.4% to close at 98.50.
“In the fourth quarter, we expect to see strong growth in Data Center and continued momentum in Client, partially offset by lower sales in the Gaming segment and additional softening of demand in the embedded markets,” Chief Financial Officer Jean Hu said in a news release.
Chief Executive Lisa Su credited strong sales of Ryzen 7000 series PC processors and record server processor sales for its Q3 beat.
“Our data center business is on a significant growth trajectory based on the strength of our Epyc CPU (central processing unit) portfolio and the ramp of Instinct MI300 accelerator shipments to support multiple deployments with hyperscale, enterprise and AI customers,” Su said in a statement.
AMD Ranks Fourth In Industry Group
Meanwhile, Intel ranks seventh out of 32 stocks in IBD’s semiconductor manufacturing industry group. Intel has an IBD Composite Rating of 62.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
YOU MAY ALSO LIKE: