Summary
Advanced Micro Devices, Inc. (AMD) filed an 8-K on October 6, 2022, to announce preliminary financial results for its third quarter ended September 24, 2022. The company indicated that its third quarter revenue is expected to be approximately $5.8 billion, which represents a 29% increase year-over-year. However, this preliminary revenue figure is below the company's previously provided guidance of $6.7 billion to $7.1 billion. This revenue shortfall is primarily attributed to a significant decline in the Client segment, driven by lower than expected unit shipments and a decrease in average selling price (ASP) of AMD's processors. Additionally, the Data Center segment's growth was impacted by supply chain constraints affecting server shipments. While the preliminary results suggest a weaker than anticipated third quarter, particularly in the Client segment, AMD is still projecting year-over-year revenue growth. Investors should closely monitor the full financial results when they are officially released for more detailed segment performance, gross margin commentary, and updated full-year guidance. The company's stock performance will likely be influenced by its ability to navigate current market conditions and recover growth momentum in key segments.
Key Highlights
- 1AMD announced preliminary Q3 2022 revenue of approximately $5.8 billion, up 29% year-over-year.
- 2This preliminary revenue is below the company's previously issued guidance range of $6.7 billion to $7.1 billion.
- 3The Client segment experienced a significant decline, impacting overall revenue.
- 4Lower unit shipments and reduced Average Selling Prices (ASPs) in the Client segment were primary drivers of the shortfall.
- 5Data Center segment growth was also affected by supply chain constraints impacting server shipments.
- 6The company is providing this update via an 8-K filing and an attached press release, which is considered furnished, not filed.