AMD falls 10.9% before Tuesday’s results as chip stocks sink
In short
- AMD closed Friday at $504.80, down 10.9% on the day and about 22% below its high of $649.42, after Intel’s weak guidance hit chip stocks. It reports on Tuesday 3 November after the US close.
- Intel guided fourth-quarter revenue to $15–16 billion against about $17.1 billion expected and said the PC slowdown could last “at least through the first half of next year”. Gartner estimates third-quarter PC shipments fell 22.4%.
- On our data Friday’s falls were Nvidia −4.2%, Broadcom −5.5% and ASML −6.1%. AMD’s own guidance is revenue of about $13 billion, plus or minus $300 million.
AMD lost 10.9% on Friday as Intel’s weak outlook hit chip stocks, and it reports its own results on Tuesday after the US close. Yesterday we covered the Wall Street selloff and earlier today the Apple and Palantir results due on Monday; AMD is next.
What happened
Intel’s guidance drove the selloff: it guided fourth-quarter revenue to $15–16 billion against about $17.1 billion expected, and adjusted earnings of $0.25 a share against $0.43 expected. Its finance chief said the PC slowdown would last “at least through the first half of next year” (FinanceFeeds). Gartner estimates third-quarter PC shipments fell 22.4% from a year earlier to 55.4 million units, which FinanceFeeds links partly to higher memory and storage costs. The publication notes that PCs are over half of Intel’s expected revenue exposure and under a quarter of AMD’s. Intel fell about 29% on Friday (see our article from Saturday).
AMD closed at $504.80 on our data, 10.9% below Thursday’s $566.42, and is still about 97% higher than a year ago. Other chip stocks on our data: Nvidia −4.2% to $204.64, Broadcom −5.5% to $326.08 and ASML −6.1%.
AMD reports fiscal third-quarter results on Tuesday after the US market closes, with the call at 5:00 p.m. New York time (10:00 p.m. UK time, midnight in Sofia). The company’s own guidance was revenue of about $13 billion plus or minus $300 million and a non-GAAP gross margin of about 56%; TipRanks puts consensus revenue at $13.09 billion.
What it means for you
The math: $1,000 in AMD shares on Thursday evening was worth about $891 by Friday evening (−10.9%), about $109 less. At $504.80, $1,000 buys about 1.98 shares. AMD’s own revenue guidance range is $12.7–13.3 billion, or about 2.3% either side of $13 billion.
Live prices: the stock market.
Bottom line
AMD fell 10.9% to $504.80 on Friday after Intel’s weak outlook and reports on Tuesday after the close, guiding to revenue of about $13 billion; Nvidia, Broadcom and ASML fell 4–6%. These are expectations, not results.
Sources: FinanceFeeds · Stock Titan – earnings calendar
For information only. This is not investment advice.
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