What's Going On With AMD Stock Wednesday?

Advanced Micro Devices Inc AMD shares are trading lower Wednesday on the heels of the company's third-quarter financial results. Multiple analysts lowered price targets following the print.

• Q3 Revenue: $5.8 billion versus estimates of $5.695 billion
• Q3 EPS: 70 cents versus estimates of 68 cents

Data center revenue was $1.6 billion, flat on a year-over-year basis. Client revenue was $1.5 billion, up 42% year-over-year. Gaming revenue was $1.5 billion, down 8% year-over-year and Embedded revenue was $1.2 billion, down 5% year-over-year. 

Gross margin was 51%, operating income was $1.3 billion and net income was $1.1 billion in the third quarter. 

"We delivered strong revenue and earnings growth driven by demand for our Ryzen 7000 series PC processors and record server processor sales," said Lisa Su, chair and CEO of AMD.

"Our data center business is on a significant growth trajectory based on the strength of our EPYC CPU portfolio and the ramp of Instinct MI300 accelerator shipments."

Outlook: AMD sees fourth-quarter revenue of approximately $6.1 billion, plus or minus $300 million, which represents growth of about 9% at the midpoint. Gross margin is expected to be approximately 51.5%.

"In the fourth quarter, we expect to see strong growth in Data Center and continued momentum in Client, partially offset by lower sales in the Gaming segment and additional softening of demand in the embedded markets," said Jean Hu, executive vice president and CFO of AMD.

See Also: NVDA, AMD Boomed Thanks To Crypto Mining, But What Happened After Ethereum's Big Move From Proof-Of-Work? One Stock Was A Clear Winner

Analyst Changes: 

• Keybanc analyst John Vinh maintained AMD with an Overweight and lowered the price target from $160 to $140.
• Raymond James analyst Srini Pajjuri maintained AMD with a Strong Buy and lowered the price target from $145 to $125.
• Morgan Stanley analyst Joseph Moore maintained AMD with an Overweight and lowered the price target from $138 to $128.

AMD Price Action: AMD shares were down 1.14% at $97.38 at the time of publication, according to Benzinga Pro.

Photo: courtesy of AMD.