Lisa T. Su, CEO of Advanced Micro Devices
Adam Jeffery | CNBC
AMD released preliminary third-quarter results Thursday that are well below original guidance.
The company reported preliminary quarterly revenue of around $5.6 billion. It had initially said it expected $6.7 billion in revenue for the quarter, plus or minus $200 million. AMD also said its non-GAAP gross margin is expected to come in at around 50%, while it had previously expected the gross margin to be closer to 54%.
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Shares fell more than 3% in after-hours trading.
AMD said the shortfall was a combination of a “weaker than expected PC market and significant inventory correction actions across the PC supply chain.”
In its latest quarterly results, AMD had already given a forecast for the 3rd quarter that was lower than Wall Street expected.
AMD’s customer segment revenue came in at about $1 billion, the company said, down 40% year over year. The gaming segment generated about $1.6 billion in revenue, up 14% year-over-year, and the data center business also generated about $1.6 billion in sales for the quarter, up 45% year-over-year.
The increase in the Embedded business AMD’s Embedded business, which is primarily a result of the acquisition of Xilinx earlier this year, generated about 1.3 billion dollars.
Overall, sales of $5.6 billion were up 29% from the third quarter of 2021, but down 15% from the previous quarter.
Overall, the stock is down about 53% for the year while the S&P 500 is down more than 21%.