Advanced Micro Devices, Inc. AMD shares fell nearly 2% in premarket trading on Wednesday after the chipmaker disappointed investors with a lukewarm fourth-quarter outlook.
The Santa Clara, California-based chipmaker reported above-consensus third-quarter non-GAAP earnings per share and revenue, with the upside achieved on the back of strong PC and server processor sales.
The company’s fourth-quarter revenue guidance of $6.1 billion plus or minus $300 million trailed estimates of most analysts.
Reviewing the results, KeyBanc Capital Markets analyst John Vinh trimmed the price target for the shares from $160 to $140, while maintaining an Overweight rating.
“While data center is on track for HSD% growth and 50% 2H vs. 1H and PC is showing a strong recovery, this is being negatively impacted by a correction in Embedded and softer Gaming demand,” the analyst said.
“We’re most encouraged by the data center results and outlook for both server CPU and GPU but are lowering estimates to reflect weak embedded/gaming,” he added.
The analyst sees the Dec. 6 launch event for MI300X as the next catalyst for the stock.
In premarket, the stock fell 1.95% to $96.58, according to Benzinga Pro data.
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