Advanced Micro Devices (AMD) reported lower-than-expected third-quarter results, and its stock fell after Tuesday’s close.
The company’s third-quarter revenue rose 18% year-over-year to $6.82 billion, beating Visible Alpha’s analyst consensus. Net income was $771 million, or 47 cents per share, up from $299 million, or 18 cents per share, in the year-ago period, but was below street expectations due to higher costs.
Despite record data center revenue, AMD’s outlook is disappointing
AMD’s revenue increase came as data center sales more than doubled to a new high of $3.5 billion, driven by demand for the company’s artificial intelligence (AI) chips.
The results indicate that AMD, which announced its next-generation AI chips at its Advancing AI event earlier this month, did not raise its AI sales outlook or announce new customers as many investors had expected. The announcement was made in response to the lack of stock prices, which weighed on stock prices.
AMD said Tuesday it expects fourth-quarter revenue to be between $7.2 billion and $7.8 billion, up from $6.2 billion in the year-ago period. Analyst consensus was at the high end of that range, at $7.6 billion, according to Visible Alpha.
AMD stock fell more than 7% in extended trading Tuesday after the announcement.
