AMD Shares Down 2% on Disappointing Q3 Preliminary Results

October 6, 2022 4:40 PM EDT

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Advanced Micro Devices, Inc. (NASDAQ: AMD) shares fell more than 2% after-hours following the company’s announced preliminary financial results for Q3/22.

The company expects Q3 revenue to be approximately $5.6 billion (up 29% year-over-year), compared to its guidance midpoint of $6.7 billion and the consensus estimate of $6.69 billion.

Reduced revenue estimates reflect lower-than-expected Client segment revenue, which is a result of reduced processor shipments due to a weaker-than-expected PC market and significant inventory correction actions across the PC supply chain. In line with the company’s expectations, Data Center, Gaming, and Embedded segments' revenues each increased significantly year-over-year.

Non-GAAP gross margin is expected to be approximately 50%, down from the previously expected 54%, primarily due to lower revenue, driven by lower Client processor unit shipments and average selling price.

“While our product portfolio remains very strong, macroeconomic conditions drove lower than expected PC demand and a significant inventory correction across the PC supply chain,” said AMD Chair and CEO Dr. Lisa Su.

By Davit Kirakosyan

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