Investing.com-- Advanced Micro Devices Inc (NASDAQ:AMD) reported third-quarter earnings that met expectations, but its fourth-quarter revenue guidance fell short of analyst estimates, sending shares down 6.5% in after-hours trading.
The chipmaker posted adjusted earnings per share of $0.92 for the third quarter, in line with analyst projections. Revenue came in at $6.82 billion, surpassing the consensus estimate of $6.71 billion and representing a 22% increase YoY.
However, AMD's fourth-quarter revenue forecast of $7.5 billion, plus or minus $300 million, disappointed investors. The midpoint of this guidance range falls slightly below the analyst consensus of $7.55 billion.
"We delivered strong third quarter financial results with record revenue led by higher sales of EPYC and Instinct data center products and robust demand for our Ryzen PC processors," said AMD Chair and CEO Dr. Lisa Su.
The company's Data Center segment was a standout performer, with revenue more than doubling YoY to $3.5 billion. Client segment revenue also showed strong growth, rising 29% YoY to $1.9 billion. However, the Gaming segment saw a significant decline, with revenue dropping 69% YoY to $462 million.
Despite the mixed results and cautious outlook, AMD remains optimistic about its long-term prospects. "Looking forward, we see significant growth opportunities across our data center, client and embedded businesses driven by the insatiable demand for more compute," Dr. Su added.