Copyright investors
Advanced Micro Devices (AMD) late Tuesday beat Wall Street's targets for the third quarter and guided higher than estimates for the current quarter. However, AMD stock fell in extended trading. The Santa Clara, Calif.-based chipmaker earned an adjusted $1.20 a share on sales of $9.25 billion in the September quarter. Analysts polled by FactSet had expected AMD to earn $1.17 a share on sales of $8.76 billion. On a year-over-year basis, AMD earnings rose 30% while sales increased 36%. For the current quarter, AMD predicted sales of $9.6 billion. Wall Street had been modeling $9.21 billion for the fourth quarter. In the year-earlier period, AMD generated revenue of $7.66 billion. "We delivered an outstanding quarter, with record revenue and profitability reflecting broad-based demand for our high-performance Epyc and Ryzen processors and Instinct AI accelerators," AMD Chief Executive Lisa Su said in a news release. "Our record third-quarter performance and strong fourth-quarter guidance marks a clear step up in our growth trajectory as our expanding compute franchise and rapidly scaling data center AI business drive significant revenue and earnings growth." However, much of the company's better-than-expected Q3 performance was due to its PC and gaming chip business. That unit saw revenue increase 73% year over year to $4 billion. Meanwhile, the company's data center segment saw revenue rise 22% to $4.3 billion. Sales in its other segment, embedded chips, dropped 8% to $857 million. AMD Stock Pulls Back After Report In after-hours trading on the stock market today, AMD stock fell nearly 1% to 248.24. During the regular session Tuesday, AMD stock sank 3.7% to close at 250.05. On Oct. 29, AMD stock notched a record high of 267.08. AMD stock lately has been buoyed by sales of processors for artificial intelligence systems. In recent weeks, it has secured AI chip deals with Oracle (ORCL), OpenAI, Zyphra and the U.S. Department of Energy. In the AI chip market, AMD competes primarily with Nvidia (NVDA) and Broadcom (AVGO). AMD stock is on the IBD Tech Leaders list. Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks. YOU MAY ALSO LIKE
