Chipmaker AMD Delivers Beat-And-Raise Report, But Stock Drops

Core Insights - Advanced Micro Devices (AMD) reported strong Q3 earnings, exceeding Wall Street expectations with an adjusted earnings of $1.20 per share on sales of $9.25 billion, compared to analyst predictions of $1.17 per share and $8.76 billion in sales [2][3] - Year-over-year, AMD's earnings increased by 30% and sales rose by 36%, indicating robust growth [2] - For the current quarter, AMD forecasts sales of $9.6 billion, surpassing Wall Street's estimate of $9.21 billion [2] Financial Performance - AMD's Q3 performance was driven by significant growth in its PC and gaming chip business, which saw a revenue increase of 73% year-over-year to $4 billion [3] - The data center segment also performed well, with a revenue rise of 22% to $4.3 billion, while the embedded chips segment experienced an 8% decline to $857 million [4] Stock Market Reaction - Despite the strong earnings report, AMD's stock fell nearly 1% in after-hours trading to $248.24, following a 3.7% decline during regular trading, closing at $250.05 [5] - AMD's stock had previously reached a record high of $267.08 on October 29, buoyed by sales of processors for artificial intelligence systems [5] Competitive Landscape - In the AI chip market, AMD competes primarily with Nvidia and Broadcom, indicating a competitive environment for high-performance computing solutions [6]