| | | Advanced Micro Devices Issues Downbeat Revenue Outlook Following Third-Quarter Beat
MT NEWSWIRES 5:07 PM ET 10/31/2023
Symbol Last Price Change |
| AMD | 98.5 | +2.32 (+2.4121%) | | QUOTES AS OF 04:00:00 PM ET 10/31/2023 |
05:07 PM EDT, 10/31/2023 (MT Newswires) -- Advanced Micro Devices(AMD) late Tuesday reported stronger-than-expected third-quarter results, while the chipmaker issued a downbeat revenue guidance for the ongoing three-month period.
Adjusted per-share earnings rose to $0.70 for the three months ended Sept. 30 from $0.67 a year earlier, compared with the consensus on Capital IQ for $0.68. Revenue increased 4% to $5.80 billion, above the Street's $5.69 billion view.
"We delivered strong revenue and earnings growth driven by demand for our Ryzen 7000 series (personal computer) processors and record server processor sales," Chief Executive Lisa Su said.
The client division's revenue surged 42% to $1.45 billion due to higher Ryzen mobile processor sales, AMD said. Gaming sales declined 8% to $1.51 billion, while the embedded segment fell 5% to $1.24 billion amid a decrease in the communications market's revenue.
Data center revenue edged lower to $1.6 billion in the third quarter from $1.61 billion a year earlier as growth in EPYC central processing unit sales was offset by a decline in adaptive system-on-chip products, AMD said.
The company expects fourth-quarter revenue of about $6.1 billion, plus or minus $300 million. The mid-point of the range implies year-over-year growth of 9%, the company said. The consensus on Capital IQ is for $6.39 billion. Adjusted gross margin is forecast at about 51.5%, compared with a 51% rate reported for the third quarter.
The stock was declining 4.4% in after-hours activity.
"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.
The company said it closed its acquisition of open-source artificial intelligence software firm Nod.ai.
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