Credit: REUTERS/STEVE MARCUSAdds 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.
