AMD reports highest turnover in more than a decade, but slightly easy forecast makes stocks unstable

Advanced Micro Devices Inc. reported its highest quarterly turnover of more than a decade on Tuesday, but a forecast that fell slightly below expectations sent shares on a late-trading see-saw.


AMD, -1.96%

reported net income for the third quarter of $ 120 million, or 11 cents per share, compared to $ 102 million, or 9 cents per share, the previous year. Adjusted earnings were 18 cents per share. Revenue rose to $ 1.8 billion from $ 1.65 billion in the prior year quarter. Analysts surveyed by FactSet had projected adjusted earnings of 1[ads1]8 cents per share on revenue of $ 1.81 billion.

Read: It's not just Texas Instruments, Morgan Stanley warns

“Our first full quarter at 7nm Ryzen, Radeon and Epyc processor revenue drove our highest quarterly revenue since 2005, our highest quarterly gross margin since 2012 and a significant increase in net revenue year over year, "Lisa Su, AMD president and CEO, said in a statement.

In chip parlance, nanometers or nm refers to the size of transistors running on a computer chip, with the general the rule that smaller transistors are faster and more efficient in using power.

"AMD is booming," Patrick Moorhead, principal analyst at Moor Insights and Strategy, said in email comments. "These numbers were driven by the first full quarter for the new 7nm parts, including Ryzen, Radeon and Epyc. "

Moorhead noted that AMD's" PC group consisting of Ryzen processors and Radeon graphics led the charge with a glance end 36% growth, "and that" Epyc sales increased by more than 50% signaling to me that the big volume ramp has finally started. "

Read: Sales of semiconductor products, whispering out of Asia tell different stories about the chip market

AMD expects fourth-quarter revenue of $ 2.05 billion to $ 2.15 billion, while analysts on average, it had expected sales of $ 2.15 billion, according to FactSet.

Shares were unstable in the extended session Tuesday, rising 3% before falling as much as 2%. After hours, the stock was last up 1%. The stock closed with a 2% decline in the $ 33.03 regular session. By comparison, the S&P 500 index

SPX, -0.08%

down 0.1%, the technically heavy Nasdaq Composite Index

COMP, -0.59%

fell 0.6% and PHLX Semiconductor Index

SOX, -0.90%

fell 0.9% on Tuesday.

AMD's report follows Intel Corp.'s

INTC, -0.74% ,

where shares fell again after the major chip maker gave an optimistic forecast, and the gains in shares in NXP Semiconductors NV

NXPI, + 5.30%

who also reported strong results. On the other hand, results from chip makers Texas Instruments Inc.

TXN, + 0.24%

and Xilinx Inc.

XLNX, -2.55% ,

who were not as optimistic.

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