Advanced Micro Devices late Tuesday matched Wall Street's earnings target for the third quarter on better-than-expected sales. But the chip giant's revenue guidance for the current period was a bit light. AMD stock fell in extended trading.
The Santa Clara, Calif.-based company earned an adjusted 92 cents a share on sales of $6.82 billion in the September-ended quarter. Analysts polled by FactSet had expected AMD earnings of 92 cents a share on sales of $6.71 billion. On a year-over-year basis, AMD earnings rose 31% while sales increased 18%.
For the current quarter, AMD predicted sales of $7.5 billion, up 22% year over year. However, that forecast is a tad below Wall Street's estimate of $7.55 billion in Q4 sales.
"We delivered strong third-quarter financial results with record revenue led by higher sales of Epyc and Instinct data center products and robust demand for our Ryzen PC processors," Chief Executive Lisa Su said in a news release.
She added, "Looking forward, we see significant growth opportunities across our data center, client and embedded businesses driven by the insatiable demand for more compute."
On Oct. 10, AMD announced its latest AI data center processors and new PC and server chips. The company detailed its AMD Instinct MI325X AI accelerators and next-generation networking solutions. It also launched its fifth-generation Epyc server central processing units and Ryzen AI Pro 300 Series PC processors.
AMD Stock Retreats After Report
AMD competes with Intel in PC and server processors and Nvidia in AI accelerators and graphics chips.
In after-hours trading on the stock market today, AMD stock sank more than 7% to 154.21. During the regular session Tuesday, AMD stock surged 4% to close at 166.25.
AMD stock is on the IBD Tech Leaders list.
Advanced Micro Devices ranks eighth out of 39 stocks in IBD's fabless semiconductor industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 88 out of 99.
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