AMD falls as guidance comes in light despite strong Q2 results

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Advanced Micro Devices (NASDAQ:AMD) shares fell 4% in after-hours trading, Tuesday, as the semiconductor company offered third-quarter guidance that fell short of expectations even as it posted second-quarter results that topped estimates.

Following the close of trading, AMD (AMD) said that for its fiscal third quarter it expects to report revenue between $6.5B and $6.9B, while analysts were expecting $6.81B. Looking to the full-year, AMD (AMD) said revenue is likely to be between $26B and $26.6B.

That outlook took some of the shine of what was a strong second-quarter report for the semiconductor giant.

For the period ending June 25, AMD (AMD) said it earned $1.05 a share on $6.55B in revenue, aided by 83% growth in data center sales.

AMD (AMD) also saw strength in the company’s client segment, which includes PC processors, as sales rose 25% year-over-year to $2.2B. Gaming revenue rose 32% year-over-year to $1.7B and embedded segment revenue rose 2,228% year-over-year, thanks to the company’s Xilinx acquisition.

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

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 pm EST to discuss the results.

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

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