Advanced Micro Devices Closes Down Nearly Eleven Percent Ahead of Third-Quarter Earnings
Advanced Micro Devices shares closed at $504.80 on Friday, October 30, dropping 10.88 percent from a previous close of $566.42 as a broad industry semiconductor sell-off dragged down the stock, financefeeds.com reported. StockAnalysis data cited by financefeeds.com showed trading volume reached 39.7 million shares, roughly double the average of the previous four sessions, with an intraday low touching $492.21. The drop arrived without any company-specific announcements from Advanced Micro Devices, leaving investors reacting entirely to an earnings warning issued by competitor Intel.
Intel PC Warning Triggers Sector-Wide Semiconductor Sell-Off
The downward pressure across chip equities began late Thursday when Intel issued a fourth-quarter revenue outlook ranging between $15 billion and $16 billion. Because Advanced Micro Devices competes directly against Intel in personal computer processors, market participants immediately priced in a matching contraction for Advanced Micro Devices before company executives addressed shareholders. Intel reported that wafer and substrate shortages continued to restrict server processor deliveries—constraints management expects to persist into the first half of 2027. Market analysts note that server supply limitations at Intel could create opening opportunities for Advanced Micro Devices, whose data center division generated more than double the revenue of its client segment during the previous quarter.
Advanced Micro Devices is trading at ARS 82,400, down 11.6%, amid sector-wide concerns about chip demand and AI spending.- On October 30, Intel’s weaker-than-expected fourth-quarter outlook and disappointing Amazon results rattled chip and AI-related stocks, following… pic.twitter.com/uepNd35sS0
Upcoming Earnings Release and Revenue Guidance Details
Advanced Micro Devices is scheduled to release its third-quarter financial results after the market closes, followed by an investor conference call at 5:00 p.m. Management previously guided third-quarter revenue to approximately $13.0 billion, plus or minus $300 million, representing roughly 41 percent year-over-year growth and a 13 percent sequential increase, alongside an anticipated non-GAAP gross margin of around 56 percent. Wall Street consensus estimates stand at approximately $13.09 billion. Options markets priced in an implied post-earnings move of roughly 8.8 percent in either direction ahead of the report, according to data from EarningsWatcher cited by financefeeds.com, sitting below the company’s ten-year historical average move of 10.6 percent. Susquehanna analyst Christopher Rolland recently raised his price target on the stock to $650 from $620 while maintaining a positive rating, pointing to expected data center strength despite anticipated near-term margin pressures.
Frequently Asked Questions About the Upcoming Earnings Report
When does Advanced Micro Devices report third-quarter earnings?
The company will release its financial results on Tuesday, November 3, after the U.S. market closes, and will host a conference call at 5:00 p.m. Eastern Time, as confirmed by official company filings.
Why did Advanced Micro Devices shares fall on October 30?
The stock fell 10.88 percent to close at $504.80 after Intel warned of a severe personal computer market downturn lasting into 2027, which triggered a broad sell-off across competing chipmakers despite no negative releases originating from Advanced Micro Devices itself.
What revenue figures do analysts expect for the quarter?
Management previously issued revenue guidance of about $13.0 billion, while consensus analyst estimates tracked by financefeeds.com place expected revenue slightly higher at approximately $13.09 billion.
Keep reading