Advanced Micro Devices (AMD) is down more than 7% late Tuesday as Wall Street reacts to its third-quarter earnings, released after today’s closing bell. Revenue of $6.82 billion exceeded expectations, and so did adjusted earnings per share of $0.92.
However, AMD’s guidance for the fourth quarter arrived slightly below analysts’ expectations, raising concerns about the pace of AI-related growth. The artificial intelligence (AI) chip giant expects Q4 revenue of $7.4-$7.8 billion, which fell narrowly short of the consensus forecast of $7.55 billion at the midpoint.
Despite these challenges, AMD management remains optimistic about its long-term prospects, driven by strong data center performance and ongoing demand for computing power. Data center revenue was up 122% in Q3 to a record $3.5 billion.
Heading into tonight’s report, AMD stock rallied 6.4% over the last two days, including a nearly 4% gain today - suggesting that traders were pricing in quite a bit of optimism ahead of the Q3 release.
