AMD's outlook gives chipmaker a mild lift despite earnings falling short of estimates
Justin Sullivan

Advanced Micro Devices (NASDAQ:AMD) shares edged up by about 2% in after-hours trading Tuesday as the semiconductor giant gave a revenue outlook that suggests sales should grow over the final three months of 2022.
AMD (AMD) said that for its current, fiscal fourth quarter, it expects revenue to be in a range of $5.2B to $5.8B, or about 14% higher than the year-ago period. With that fourth-quarter outlook, AMD (AMD) estimates its full-year sales should be between $23.2B and $23.8B
The company's forecasts came at the same time AMD (AMD) delivered third-quarter results that were shy of the those in the earnings and sales warning it gave almost a month ago.
AMD (AMD) said that for the quarter ended September 24, it earned 67 cents a share, excluding one-time items, on revenue of $5.57B. On October 7, AMD (AMD) said it believed it would earn 70 cents a share, excluding one-time items, on $5.6B in sales.
In a statement, Lisa Su, AMD's (AMD) Chief Executive, said the company's results "were below our expectations due to the softening PC market and substantial inventory reduction actions across the PC supply chain."
With regards to its specific business areas, AMD (AMD) said data center revenue rose 45% from a year ago, to $1.6B, on strong sales of the company's Epyc server processors. Gaming revenue of $1.6B was up by 14% over the third quarter of 2021, and embedded segment revenue surged to $1.3B, due in large part to revenue from Xilinx embedded systems. AMD (AMD) completed its nearly $50B all-stock acquisition of Xilinx in February.
However, AMD's client segment revenue which includes PC sales, fell 40% from a year ago, to $1B. AMD (AMD) said the division's results reflect "reduced shipments resulting from a weak PC market and a significant inventory correction across the PC supply chain." The division also reported a $26M operating loss, compared to an operating profit of $490M a year ago.
AMD's (AMD) results came out one day after Northland Capital Markets analyst Gus Richard cut his rating on the company's stock to market perform from outperform.