Advanced Micro Devices Inc. reported its highest quarterly sales in more than a decade on Tuesday, but the forecast, which appeared slightly below expectations, sent the stock off late-trading.
reported third quarter net income of $ 120 million, or 11 cents a share, up from $ 102 million, or 9 cents a share, in the year-ago period . Adjusted earnings were 18 cents a share. Revenue rose to $ 1.8 billion from $ 1.65 billion in the previous quarter. Analysts surveyed by FactSet forecast adjusted earnings of 1
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"Our first full quarter of sales of 7nm Ryzen, Radeon and Epyc processors led to our highest quarterly revenue since 2005 "our highest quarterly gross margin since 2012 and a significant increase in net income year-on-year," said Lisa Su, AMD president and CEO, in a statement.
In chips, nanometers or nm, refers to the size of transistors that go to a computer chip, the general rule being that smaller transistors are faster and more efficient when using power.
During the conference, Su said she was very pleased with the acceptance from customers in the cloud.
"We are involved in all major Tier 1 and many of the second-tier service providers and I think we are making good progress there," Su said. "As this is specific to China, we are well engaged there both in the cloud and in the enterprise."
"Obviously there is little disruption due to some of the corporate clients in China and we follow close up, ”said Su. "But as a whole, I think we are – we believe Rome has a strong effect in both the cloud and the enterprise."
"AMD is thriving," says Patrick Moorhead, chief analyst at Moor Insights and Strategy, in email comments. "These figures were powered by the first full quarter for its new 7nm parts, including Ryzen, Radeon and Epyc."
Moorhead noted that "AMD's PC group, consisting of Ryzen processors and Radeon graphics, is charging attracting 36% growth, "and that" Epyc sales are growing more than 50% consistently, signals to me that the big volume ramp has finally started. "
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AMD expects fourth quarter revenue from $ 2.05 billion to $ 2.15 billion , while analysts averaged $ 2.15 billion in revenue, according to FactSet.
Shares were volatile in the extended session on Tuesday, rising 3% before falling as much as 2%. The stock closed with a 2% drop in the regular session at $ 33.03.
closed 0.1%, the tech heavy Nasdaq Composite Index
decreases by 0.6%, and the PHLX semiconductor index
fell 0.9% on Tuesday.
AMD Report Follows Intel Corp.
INTC, -0.74% ,
where the shares came together after a major chip maker gave an optimistic outlook and won shares at NXP Semiconductors NV
NXPI, + 5.30%
which also has strong results. On the other hand, the results from Texas Instruments Inc. chip makers
TXN, + 0.24%
and Xilinx Inc.
XLNX, -2.55% ,
who were not so optimistic.