AMD shares fall as forecast fails to impress despite strong AI growth
AMD shares are up about 20% so far in 2024, although rivals such as Nvidia and Broadcom have had much greater gains during the same period, driven by AI chips.
Advanced Micro Devices reported third-quarter results Tuesday, with earnings in line with forecasts and revenue that slightly beat expectations.
Here's how the company did, compared with LSEG estimates for the quarter ending Sept. 28:
Earnings per share: 92 cents adjusted vs. 92 cents expected
Revenue: $6.82 billion vs. $6.71 billion expected
AMD said its important data center business doubled in sales for the second quarter in a row, but overall revenue guidance for the fourth quarter was in line with consensus expectations.
AMD shares fell 7% on Tuesday in extended trading.
AMD said it expected about $7.5 billion in sales in the current quarter, in line with consensus expectations of $1.16 in adjusted earnings per share on $7.54 billion in revenue. That would be a 22% year-over-year decline for the December quarter.
Article