AMD drops as steering comes out regardless of robust Q2 outcomes

Semiconductor manufacturer quarterly earnings report

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Advanced Microphone Device (NASDAQ:AMD) stocks fell 4% in after-hours trading, on Tuesday, as the semiconductor company issued third-quarter guidance that fell short of expectations even as it announced second-quarter results topping estimates.

After closing the transaction, AMD (AMD) said for its fiscal third quarter it expected to report revenue between $6.5 billion and $6.9 billion, while analysts expected 6.81 billion dollars. Looking at the whole year, AMD (AMD) said revenue could be between $26 billion and $26.6 billion.

That outlook shed some light on the strong second-quarter report for the semiconductor giant.

During the period ending June 25, AMD (AMD) speak it earned $1.05 a share on revenue of $6.55 billion, helped by 83% growth in data center sales.

AMD (AMD) also saw strength as the company’s customer segment, which includes PC processors, as sales grew 25% year over year to $2.2 billion. Game revenue grew 32% year-over-year to $1.7 billion, and embedded revenue grew 2,228% year-over-year, thanks to the company’s acquisition of Xilinx.

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

Other chip companies like Nvidia (NVDA) and Marvell (MURLY) shares fell after 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 that AMD (AMD) is his top pick in the semiconductor space.

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