Advanced Micro Devices Inc reported first quarter financial results that beat Wall Street estimates, but the shares soon fell as investors thumbed down a lackluster forecast.
For the quarter ended March 31, 2023, the California-based chip giant reported earnings of $0.60 per share on revenue of $5.4 billion. The consensus earnings estimate was $0.56 per share on revenue of $5.3 billion.
The company’s revenue fell 9.1% compared to the same quarter a year ago, as AMD struggled with a PC slump. The PC market has been in a slump for the past few quarters after a demand surge during the pandemic.
AMD said it expects second quarter revenue of $5.3 billion, plus or minus $300 million. However, Wall Street was looking for $5.5 billion. In the same quarter last year, AMD sales were $6.55 billion.
“Longer-term, we see significant growth opportunities as we successfully deliver our roadmaps, execute our strategic data center and embedded priorities and accelerate adoption of our AI portfolio,” said Advanced Micro CEO Lisa Su.
AMD shares fell 7.5% to $83.57 on the tech-dominated Nasdaq in morning trade.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive