AMD Stock Slips As Investors Shrug Off Q3 Beat And Fret Over Lukewarm Guidance; CEO Lisa Su Talks Up AI Chip Ramp-up
Portfolio Pulse from Shanthi Rexaline
Advanced Micro Devices, Inc. (AMD) reported Q3 earnings and revenue that exceeded expectations, but the Q4 guidance was in line with estimates, causing the stock to drop in after-hours trading. AMD's Q3 non-GAAP earnings per share (EPS) was 70 cents, up 4% YoY, and revenue grew 4% YoY to $5.8 billion. However, analysts are cautious about Q4, with some expecting a moderate ramp-up of Genoa and potential volume pushout of MI300A at HP/El Capitan. AMD's stock fell 4.06% to $94.36 in after-hours trading.
October 31, 2023 | 8:34 pm
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NEUTRAL IMPACT
Intel Corp. (INTC) was mentioned in comparison to AMD's earnings. Last week, INTC reported EPS and revenue ahead of consensus estimates.
Intel was mentioned in the context of AMD's earnings report. While Intel's recent earnings beat may have a positive impact on its stock, it's not directly related to the news about AMD's Q3 results and Q4 guidance.
CONFIDENCE 90
IMPORTANCE 20
RELEVANCE 20
NEGATIVE IMPACT
AMD's Q3 earnings beat expectations but the stock fell due to Q4 guidance being in line with estimates. Analysts are cautious about Q4.
AMD's Q3 earnings beat was overshadowed by the Q4 guidance which was only in line with estimates. This led to a drop in the stock price as investors may have been expecting a more positive outlook. Additionally, analysts' caution about Q4 adds to the uncertainty.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100