US Markets

AMD sees current-quarter revenue below estimates, shares fall

Credit: REUTERS/STEVE MARCUS

Advanced Micro Devices Inc missed Wall Street estimates for third-quarter revenue and forecast current-quarter sales below expectations on Tuesday, even as the U.S. chipmaker beat targets for its closely watched data center business.

Adds shares, estimates

Oct 29 (Reuters) - Advanced Micro Devices Inc AMD.O missed Wall Street estimates for third-quarter revenue and forecast current-quarter sales below expectations on Tuesday, even as the U.S. chipmaker beat targets for its closely watched data center business.

Shares of the company reversed course to trade down nearly 4% at $31.81 in extended trading.

AMD's forecast comes days after larger rival Intel Corp INTC.O said it anticipated strong spending in data center business in the second half.

U.S. chipmakers have provided a mixed bag of forecasts over the last week. Texas Instruments TXN.O and Xilinx Inc XLNX.O have provided gloomy expectations, citing the impact from U.S.-China trade tensions.

Sales at AMD's computing and graphics segment, which includes graphic chip sales to data centers, rose 36% to $1.28 billion, beating analysts' estimate of $1.13 billion, according to market research firm FactSet.

AMD said it expects fourth-quarter revenue of about $2.1 billion, plus or minus $50 million, compared to analysts' average estimate of $2.15 billion, according to IBES data from Refinitiv.

Revenue rose to $1.8 billion from $1.65 billion in the third quarter ended Sept. 28.

Analysts had expected the company to report revenue of $1.81 billion.

(Reporting by Munsif Vengattil in Bengaluru; Editing by Sriraj Kalluvila)

((Munsif.Vengattil@thomsonreuters.com; Twitter: @MunsifV; Phone: 646-223-8780;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More