AMD Beats Earnings Estimates, Share Decline amid Mixed Results

Revenue at Advanced Micro Devices (AMD) surpassed analyst expectations in the first quarter of this year, according to a report released by AMD on Tuesday. However, shares fell more than 3% during after-hours trading as investors digested other parts of AMD’s results, such as forecast guidance that was broadly expected.
The chipmaker reported net income of $123 million, or seven cents per share, for the first quarter compared to a loss of $139 million, or nine cents per share, in the same period last year. Sales rose 2% annually to around $5 billion. AMD’s adjusted earnings did not match analyst forecasts due to an additional item related to inventory losses being added by the company.
AMD said its Data Center segment grew by 80% on a year-over-year basis, reaching $2.3bn thanks in part to sales of its MI300 AI chip which competes with Nvidia’s graphics processors for artificial intelligence applications. AMD is expected to provide further details about the performance of this product during an earnings call later today.
The company reported a 48% annual drop, down to $922m, in revenue from its Gaming division owing mainly to lower chip sales both for video game consoles and PCs. Meanwhile, AMD’s original business – processors designed specifically for use within chips or personal computers (PC) – increased by a whopping 85% annually with the first-quarter total hitting $1.4bn according to published results released by the firm earlier this week which reported “gains in demand”.