World Stock Watch

AMD Reports Q3 Earnings: A Mixed Bag

Advanced Micro Devices (AMD) has released its third-quarter earnings report, and the results are a mixed bag. While the company’s revenue beat expectations, its earnings were in line with forecasts. Here’s a breakdown of the key numbers:

• Revenue: $7.5 billion (up 18% year-over-year)
• Net income: $771 million (up 157% year-over-year)
• Earnings per share: 47 cents (up 161% year-over-year)

Data Center Business Shines

AMD’s data center business was a bright spot in the report, with sales doubling for the second quarter in a row. The company’s Instinct-branded GPUs for AI were a major driver of this growth, with sales increasing 122% year-over-year.

AI Chip Sales on the Rise

AMD also reported strong demand for its AI chips, with sales expected to reach $5 billion this year. This is up from a previous forecast of $4.5 billion. The company’s new artificial intelligence chip, the MI235X, is expected to start production shipments this quarter.

Gaming Category Slumps

However, not all segments of AMD’s business performed well. The company’s gaming category slumped, with sales sliding 68% year-over-year. This was due to a decrease in “semi-custom revenue,” which includes custom chips for game consoles such as the Sony PlayStation 5.

Outlook

AMD’s outlook for the fourth quarter is cautious, with the company expecting revenue to decline 22% year-over-year. However, the company remains optimistic about its long-term prospects, particularly in the AI chip market.

Stock Price

AMD’s stock price fell 7% in extended trading following the release of the earnings report. Despite this, the company’s stock is still up about 20% so far this year.

Conclusion

Overall, AMD’s Q3 earnings report was a mixed bag. While the company’s data center business and AI chip sales were strong, its gaming category slumped. The company’s cautious outlook for the fourth quarter may have contributed to the decline in its stock price. However, AMD remains a major player in the tech industry, and its long-term prospects look promising.