AMD Stocks Drop Despite Strong AI Growth Failing to Meet Forecasts

Advanced Micro Devices (AMD (NASDAQ:AMD)) has announced its third-quarter results, achieving earnings and revenue that slightly exceeded expectations.

For the quarter ending September 28, AMD reported earnings of 92 cents per share, in line with forecasts. Revenue came in at $6.82 billion, compared to the expectation of $6.71 billion.

AMD noted that sales from its significant data center business doubled for the second consecutive quarter, but its general revenue guidance for the fourth quarter is consistent with consensus expectations.

AMD shares dropped by 7% in after-hours trading yesterday. The company indicated that it expects approximately $7.5 billion in sales for the current quarter, in line with a forecast for adjusted earnings per share of $1.16 against revenue of $7.54 billion. This represents a year-over-year decline of 22% for the December quarter. The chipmaker reported a net income of $771 million, or 47 cents per share, compared to $299 million, or 18 cents per share, a year earlier. The overall mean absolute deviation (MAD) revenue showed an 18% increase year-over-year.