AMD Stock: Chipmaker Narrowly Tops Q2 Goals

Advanced micro-systems (AMD) fell on Wednesday after the company’s mixed second-quarter earnings report. AMD stock fell in response to the company’s weak sales forecast for the current quarter.


The Santa Clara, Calif.-based company announced Tuesday evening that it earned an adjusted $1.05 per share on sales of $6.55 billion in the June quarter. Analysts polled by FactSet had expected AMD to earn $1.03 per share on sales of $6.53 billion. Year-over-year, AMD’s profits increased 67%, while sales increased 70%.

For the current quarter, AMD forecasts revenue of $6.7 billion, up 55% year-over-year. However, Wall Street was looking for sales of $6.84 billion in the third quarter.

For the full year, AMD now expects to generate sales of $26.3 billion, up 60%. Analysts were modeling sales of $26.21 billion.

AMD shares drop after report

In morning trading in the stock market today, AMD stock fell 1% to 98.29. During Tuesday’s regular session, AMD stock rose 2.6% to close at 99.29.

“We achieved our eighth consecutive quarter of record revenue thanks to our strong execution and expanded product portfolio,” CEO Lisa Su said in a press release. “We expect continued growth in the second half of the year, evidenced by our shipments of next-generation 5-nanometer products and supported by our diverse business model.”

AMD’s data center chip sales jumped 83% year-over-year to $1.5 billion in the second quarter. PC chip sales lagged, rising 25% to $2.2 billion.

AMD stock ranks ninth out of 34 stocks in IBD’s fabless semiconductor industry group, according to IBD Stock Checkup. It has an IBD composite rating of 89 out of 99.

IBD’s Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a composite rating of 90 or higher.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.


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