AMD misses but still ekes out 29% revenue growth

Advanced Micro Devices shares roseate arsenic overmuch arsenic 3% successful extended trading connected Tuesday aft the chipmaker announced net and quarterly guidance that failed to conscionable Wall Street's expectations

Here's however the institution did:

• Earnings: 67 cents per share, adjusted, vs. 68 cents per stock arsenic expected by analysts, according to Refinitiv.
• Revenue: $5.57 billion, vs. $5.62 cardinal arsenic expected by analysts, according to Refinitiv.

Overall, AMD's gross grew by 29% twelvemonth implicit twelvemonth successful the fiscal 3rd quarter, which ended Sept. 24, according to a statement. Net income fell 93% to $66 million, chiefly due to the fact that of AMD's $49 cardinal acquisition successful February of Xilinx, a shaper of chips called field-programmable gross arrays.

On Oct. 6, AMD issued preliminary results for the fiscal 3rd 4th that lagged guidance it provided successful August, fixed less spot shipments due to the fact that of a weaker PC marketplace than expected. The banal fell astir 14% successful its largest diminution successful a azygous trading league since March 2020.

With respect to guidance, AMD said it sees $23.50 cardinal successful full-year revenue, down from the $26.3 cardinal forecast the institution gave successful August. Analysts polled by Refinitiv had expected $23.88 billion. The institution contracted its adjusted gross borderline outlook to 52% from 54% successful August.

AMD said its Data Center conception generated $1.61 cardinal successful gross successful the fiscal 3rd quarter, up 45% and somewhat beneath the StreetAccount statement of $1.64 billion. The portion includes contributions from Xilinx and distributed computing startup Pensando, which outgo AMD $1.9 cardinal successful an acquisition completed successful May.

The chipmaker has seen steadfast request for shipments of its server chips that transportation the codification sanction Genoa. AMD plans to motorboat Epyc information halfway chips connected Nov. 10.

The information halfway concern "at slightest for now, looks decent, and rather a spot amended than what's going connected with Intel," said Stacy Rasgon, elder semiconductor expert at Bernstein, successful an interrogation connected CNBC's "Closing Bell: Overtime" aft AMD announced its results. "There's a batch of uncertainty astir what they were going to accidental astir information center, peculiarly successful the aftermath of Intel's study wherever Intel had called for the marketplace to diminution successful Q4. This is astir apt wherefore the banal is up now. The usher itself is rather weak, but it seems apt that it's isolated to PCs."

The Gaming conception produced $1.63 cardinal successful revenue. That was up astir 14% and successful enactment with the $1.63 cardinal statement among analysts surveyed by StreetAccount. The institution touted steadfast request for console chips arsenic the holidays attack for Microsoft and Sony.

The Embedded conception that includes immoderate Xilinx income delivered $1.30 billion, up from $79 cardinal successful the year-ago 4th and successful enactment with the $1.30 cardinal StreetAccount consensus.

AMD's Client unit, which the chipmaker had warned astir successful October, came up with $1.02 cardinal successful revenue. That was down astir 40% but successful excess of the $1.17 cardinal StreetAccount consensus. Four days aft AMD gave preliminary results, exertion manufacture researcher Gartner said third-quarter PC shipments fell 19.5%, the steepest diminution the institution has seen since it started pursuing the marketplace successful the mid-1990s. During the 4th AMD announced Ryzen 7000 desktop PC chips, and AMD pointed to affirmative reviews of the products.

All 4 of the segments delivered somewhat much gross than AMD had said to expect successful its October warning.

Notwithstanding the after-hours fluctuation, AMD banal has slipped 58% truthful acold this year, portion the S&P 500 scale is down 19% implicit the aforesaid period.

Executives volition sermon the results with analysts connected a league telephone starting astatine 5 p.m. ET.

This is breaking news. Please cheque backmost for updates.

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