Chipmaker Advanced Micro Devices late Tuesday matched Wall Street's earnings target for the first quarter but sales were a tad light. Its sales outlook for the current quarter was roughly in line with estimates. AMD stock fell in extended trading.
The Santa Clara, Calif.-based company earned an adjusted 62 cents a share on sales of $5.47 billion in the March quarter. Analysts polled by FactSet had expected earnings of 62 cents a share on sales of $5.48 billion. On a year-over-year basis, AMD earnings rose 3% while sales climbed 2%.
For the current quarter, AMD predicted sales of $5.7 billion, plus or minus $300 million. Analysts had been looking for Q2 revenue of $5.73 billion. In the year-earlier period, AMD generated sales of $5.36 billion for that quarter.
"We delivered strong first-quarter results with our Data Center and Client segments each growing more than 80% year-over-year driven by the ramp of MI300 AI accelerator shipments and the adoption of our Ryzen and Epyc processors," Chief Executive Lisa Su said in a news release.
AMD Stock Retreats After Report
She added, "This is an incredibly exciting time for the industry as widespread deployment of AI is driving demand for significantly more compute across a broad range of markets. We are executing very well as we ramp our data center business and enable AI capabilities across our product portfolio."
In after-hours trading on the stock market today, AMD stock sank more than 6% to 148.07. During the regular session Tuesday, AMD stock dropped 1.1% to close at 158.38.
Last week, rival Intel reported mixed first-quarter results and guided lower than views for the second quarter.
Advanced Micro Devices Is A Tech Leader
AMD stock has risen recently on reports of major cloud service providers spending heavily on AI computing infrastructure.
Further, AMD stock is on the IBD Tech Leaders list.
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