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AMD earnings Q3 2022


AMD President and CEO Lisa Su speaks throughout an AMD occasion at CES in Las Vegas on Jan. 6, 2020.

Bridget Bennett | Bloomberg | Getty Photographs

Advanced Micro Devices shares rose as a lot as 4% in prolonged buying and selling on Tuesday after the chipmaker introduced earnings and quarterly steerage that failed to satisfy Wall Avenue’s expectations

Here is how the corporate did:

  • Earnings: 67 cents per share, adjusted, vs. 68 cents per share as anticipated by analysts, in keeping with Refinitiv.
  • Income: $5.57 billion, vs. $5.62 billion as anticipated by analysts, in keeping with Refinitiv.

Total, AMD’s income grew by 29% 12 months over 12 months within the fiscal third quarter, which ended Sept. 24, in keeping with a statement. Web revenue fell 93% to $66 million, primarily due to AMD’s $49 billion acquisition in February of Xilinx, a maker of chips known as field-programmable gate arrays.

On Oct. 6, AMD issued preliminary results for the fiscal third quarter that lagged steerage it provided in August, given fewer chip shipments due to a weaker PC market than anticipated. The inventory fell nearly 14% in its largest decline in a single buying and selling session since March 2020.

With respect to steerage, AMD stated it sees $23.50 billion in full-year income, down from the $26.3 billion forecast the corporate gave in August. Analysts polled by Refinitiv had anticipated $23.88 billion. The corporate contracted its adjusted gross margin outlook to 52% from 54% in August.

AMD stated its Information Heart section generated $1.61 billion in income within the fiscal third quarter, up 45% and barely beneath the StreetAccount consensus of $1.64 billion. The unit consists of contributions from Xilinx and distributed computing startup Pensando, which value AMD $1.9 billion in an acquisition accomplished in Could.

The chipmaker has seen wholesome demand for shipments of its server chips that carry the code title Genoa. AMD plans to launch Epyc information heart chips on Nov. 10.

AMD CEO Lisa Su stated cloud income greater than doubled and elevated sequentially, whereas income from server makers concentrating on large corporations was down sequentially.

Some enterprises slowed down their purchases due to macroeconomic uncertainty, she stated.

The info heart enterprise “a minimum of for now, appears to be like first rate, and fairly a bit higher than what is going on on with Intel,” stated Stacy Rasgon, senior semiconductor analyst at┬áBernstein, in an interview on CNBC’s “Closing Bell: Additional time” after AMD introduced its outcomes. “There’s numerous uncertainty about what they have been going to say about information heart, significantly within the wake of Intel’s report the place Intel had known as for the market to say no in This fall. That is most likely why the inventory is up now. The information itself is sort of weak, but it surely appears probably that it is remoted to PCs.”

The Gaming section produced $1.63 billion in income. That was up about 14% and consistent with the $1.63 billion consensus amongst analysts surveyed by StreetAccount. The corporate touted wholesome demand for console chips as the vacations method for Microsoft and Sony.

The Embedded section that features some Xilinx gross sales delivered $1.30 billion, up from $79 million within the year-ago quarter and consistent with the $1.30 billion StreetAccount consensus.

AMD’s Shopper unit, which the chipmaker had warned about in October, got here up with $1.02 billion in income. That was down practically 40% however in extra of the $1.17 billion StreetAccount consensus. 4 days after AMD gave preliminary outcomes, know-how business researcher Gartner said third-quarter PC shipments fell 19.5%, the steepest decline the corporate has seen because it began following the market within the mid-Nineties. Throughout the quarter AMD announced Ryzen 7000 desktop PC chips, and AMD pointed to constructive opinions of the merchandise.

AMD “labored carefully with our prospects to cut back downstream stock,” Su stated.

All 4 of the segments delivered barely extra income than AMD had stated to count on in its October warning.

“We’ll proceed to put money into our strategic priorities across the information heart, embedded and industrial markets, whereas tightening bills throughout the remainder of the enterprise,” Su stated. The corporate will management working bills and headcount progress, stated Devinder Kumar, AMD’s finance chief.

However the after-hours fluctuation, AMD inventory has slipped 58% to date this 12 months, whereas the S&P 500 index is down 19% over the identical interval.

That is breaking information. Please test again for updates.

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PC weakness hitting semi stocks like AMD, says BofA's Vivek Arya



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