Advanced Micro Devices, Inc. (NASDAQ:AMD) stock fell 8.50% (As on May 3, 11:45:56 AM UTC-4, Source: Google Finance) after the company forecast quarterly sales below estimates due to a weak PC market, overshadowing the company’s optimism that the chip market would start to recover in the second half of 2023. The company also missed analyst estimates for PC and data center chips sales for the first quarter.
AMD in the first quarter of FY 23 has reported the adjusted earnings per share of $0.60, beating the analysts’ estimates for the adjusted earnings per share of $0.56, according to the Zacks Consensus Estimate. The company had reported 9 percent fall in the adjusted revenue to $5.35 billion in the fourth quarter of FY 20, beating the analysts’ estimates for revenue by 0.91%.
Meanwhile, AMD expanded capabilities for developers to build robust AI solutions leveraging AMD products including updates to the PyTorch Foundation’s PyTorch 2.0 framework which now offers native support for ROCm software and the latest TensorFlow-ZenDNN plug-in, which enables neural network inferencing on AMD EPYC CPUs. AMD announced the AMD Alveo MA35D media accelerator to power a new era of live interactive streaming services at scale, featuring an integrated AI processor that dynamically adjusts video quality. AMD expanded its embedded processor portfolio with powerful, scalable offerings for a variety of embedded applications. AMD showcased its growing presence in the telco space, including announcing a Telco Solutions testing lab to support the validation of end-to-end AMD based solutions, launching Zynq™ UltraScale+ RFSoC products to accelerate the deployment of 4G/5G radios in emerging markets, and expanding the collaboration with Nokia to power Nokia Cloud RAN solutions to help communications service providers achieve their most stringent energy efficiency goals.
In addition, AMD Ryzen mobile processors are powering new commercial, consumer and gaming experiences. The new AMD Ryzen Z1 and Z1 Extreme processors, featuring AMD RDNA 3 architecture-based graphics, bring ultimate portability and battery life to handheld PC gaming consoles, including the Asus ROG Ally. Samsung and AMD announced they signed a multi-year agreement extension to bring multiple generations of high-performance, ultra-low-power AMD Radeon graphics solutions to an expanded portfolio of Samsung Exynos SoCs.
AMD forecast current-quarter revenue of about $5.3 billion, plus or minus $300 million. Analysts polled by Refinitiv were expecting revenue of $5.48 billion. AMD expects non-GAAP gross margin to be approximately 50%.