TECH - AMD Stock Slips As Investors Shrug Off Q3 Beat And Fret Over Lukewarm Guidance; CEO Lisa Su Talks Up AI Chip Ram-up | Benzinga
Chipmaker Advanced Micro Devices, Inc. (NASDAQ:AMD) reported Tuesday after the market close third-quarter earnings and revenue that came in ahead of expectations. Strong PC and server processor sales led to the outperformance. AMD CEO Lisa Su hinted at a strong ramp of Instinct MI300 accelerator shipment
The guidance for the fourth quarter was roughly in line with estimates, sending the stock lower in after-hours trading.
AMD’s Key Q3 Numbers
AMD reported third-quarter non-GAAP earnings per shar, or EPS, of 70 cents per, up 4 % from the year-ago earnings per share of 67 cents. The bottom-line climbed 21% from second-quarter’s $0.58 per share.
Analysts, on average, had modeled EPS, of 64 cents for the quarter.
The Santa Clara, California-based company grew it revenue 4% year-over-year from $5.62 billion in the third quarter of 2022 to $5.8 billion in the third quarter of 2023. It also topped the consensus estimate of $5.27 billion. Sequentially, the top line grew 8% from $5.36 billion in the second quarter. T
In early August, AMD guided third-quarter revenue to be approximately $5.7 billion, plus or minus $300 million. The company penciled in non-GAAP gross margin at about 51% compared to the previous quarter’s 50% and year-ago’s 54%.
KeyBanc Capital Markets analyst John Vinh had modeling in line with slightly higher results, premised on improving PC demand and troughing server demand, along with normalizing Milan server processor chip inventory at Cloud Service providers. Raymond James’ Srini Pajjuri called for a slight third-quarter upside based on his view that PC tracked slightly better, and the Data Center tracked in line.
Rival Intel Corp. (NASDAQ:INTC) last week reported EPS and revenue of 41 cents and $14.16 billion, respectively, ahead of the consensus estimates of 22 cents ...