AMD Shares Fall 2% on Disappointing Q3 Preliminary Results

Advanced Micro Devices (AMD), Inc. (NASDAQ:AMD) shares fell more than 2% after-hours after the company 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 the guidance midpoint of $6.7 billion and the consensus estimate of $6.69 billion. The lower revenue estimates reflect lower than expected Customer segment revenue, which is a result of a weaker than expected PC market and lower processor shipments due to significant inventory correction actions in the PC supply chain. In line with the Company's expectations, revenues for the Data Center, Gaming and Resident segments each increased significantly year-over-year. Non-GAAP gross margin is expected to be approximately 50%, down from 54% previously expected, reflecting lower Client processor unit shipments and lower revenue due to lower average selling price. "While our product portfolio remains very strong, macroeconomic conditions resulted in lower than expected PC demand and a significant inventory correction in the PC supply chain," said Dr. Lisa Su, AMD Chairman and CEO. Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!