Shares of AMD have fallen behind baruchian Saveliev | 31.07.2019
The fall reduced the market capitalization of AMD by about $ 3 billion, lowering it to $34 billion.
On Wednesday, shares of the chipmaker fell about 7% during the morning trading. In General, the company meets analysts ‘ estimates for earnings per share and at the same time, she managed to surpass
expectations for income. Per share now, according to Refinitiv, accounted for 8 cents of profit, and the income instead of $1.52 billion were $1.53 billion
Despite the fact that compared to last quarter, AMD’s revenue increased by 20%, when compared with the same quarter last year we see a drop of 13%. But recall that in that year its shares
increased by more than 70%, and raised the company to second place in the index PHLX Semiconductor.
AMD said that the revenue from the unit “Computing and Graphics” decreased by 13% compared to last year and amounted to 940 million dollars. In her opinion, the decrease was due to weak sales
graphic channel, however, the improvement compared to the previous quarter the company has tied up with the growth in sales of graphics processors.
AMD’s revenue from the “Enterprise, Embedded and Semi-Custom” also decreased by 12% compared to the same period last year and amounted to $ 591 million for the quarter.
In the third quarter, the company expects revenue in the amount of $ 1.8 billion, plus the minute 50 million, below the $1.95 billion projected by analysts. Revision and lowering of the forecast on
to the CEO of AMD Lisa su, is associated with changes in the market of gaming consoles, which is now focused the interest of AMD.
The trade situation with China is the manufacturer of the chips concerned in the same way as the rest of the players of the semiconductor market. Madam su said that the loss of several Chinese customers brought
some difficulties in the second quarter, but AMD have great products in the second half, the company has good growth prospects.
Also, the manufacturer expects that sales of processors Ryzen, EPYC and Radeon will contribute to revenue growth this year.
Source: cnbc.com
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