AMD falls as guidelines come to light despite strong Q2 results

Semiconductor Maker Advanced Micro Systems Reports Quarterly Results

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Advanced micro-devices (NASDAQ:AMD) shares fell 4% in after-hours trading, Tuesday, when the semiconductor company offered a third-quarter advisory that fell short of expectations, even as it released second-quarter results that exceeded estimates.

After the close of trading, AMD (AMD) said it expects revenue of between $6.5 billion and $6.9 billion for its fiscal third quarter, while analysts expected $6.81 billion. Looking at the full year, AMD (AMD) said sales are likely to be between $26 billion and $26.6 billion.

Those prospects took some of the shine off what was a strong second-quarter report for the semiconductor giant.

For the period ended June 25, AMD (AMD) said it earned $1.05 per share on $6.55 billion in revenue, helped by 83% growth in data center sales.

AMD (AMD) also saw strength in the company’s customer segment, which includes PC processors, as year-over-year sales increased 25% to $2.2 billion. Gaming revenues grew 32% year-over-year to $1.7 billion and embedded segment revenues grew 2.228% year-over-year, driven by the company’s acquisition of Xilinx.

A consensus of analysts expected AMD (AMD) to earn $1.04 per share during the period on revenue of $6.53 billion.

Other chip companies, such as Nvidia (NVDA) and Marvell (MRVL) shares fell on the back of the report.

AMD (AMD) will hold a conference call at 5 p.m. EST to discuss the results.

Last month, Wedbush Securities analyst Matt Bryson said AMD (AMD) was his top pick in semiconductors.

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