AMD falls as guidance comes to light despite strong Q2 results
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Advanced Micro Devices (NASDAQ:AMD) the share fell 4 percent in aftermarket trading on Tuesday, as the semiconductor company offered third-quarter guidance that fell short of expectations, although it posted second-quarter results that topped estimates.
After market close, AMD (AMD) said that for the third quarter it expects to report revenue between $6.5B and $6.9B, while analysts expected $6.81B. Looking at the full year, AMD (AMD) said revenue is likely between $26B and $26.6B.
That outlook took some of the shine off what was a strong second-quarter report for the semiconductor giant.
For the period ending June 25, AMD ( AMD ) said it earned $1.05 a share on $6.55 billion in revenue, helped by 83% growth in data center sales.
AMD ( AMD ) also saw strength in the company’s customer segment, which includes PC processors, as sales rose 25% year over year to $2.2 billion. Gaming revenue increased 32% year-over-year to $1.7 billion, and revenue from embedded segments increased 2,228% year-over-year, thanks to the company’s Xilinx acquisition.
A consensus among analysts expected AMD ( AMD ) to earn $1.04 per share on $6.53 billion in revenue during the period.
Other chip companies such as Nvidia ( NVDA ) and Marvell ( MRVL ) shares fell on the back of the report.
AMD (AMD) will hold a conference call at 5:00 PM EST to discuss the results.
Last month, Wedbush Securities analyst Matt Bryson said AMD ( AMD ) was his top pick in the semiconductor space.
