Advanced Micro Devices Stock Sinks as Q4 Guidance Disappoints. What to Know
Advanced Micro Devices is one of the worst S&P 500 stocks Wednesday after the chipmaker's Q4 outlook left Wall Street wanting more.


Advanced Micro Devices (AMD) stock is one of the worst S&P 500 stocks Wednesday after the semiconductor company satisfied analysts' expectations for its third quarter, but issued disappointing guidance for its fourth quarter.
In the three months ended September 28, AMD's revenue increased 17.6% year over year to $6.8 billion, boosted by 122.1% growth in its Data Center segment to $3.5 billion. Its earnings per share (EPS) were up 31.4% from the year-ago period to 92 cents.
"We delivered strong third-quarter financial results with record revenue led by higher sales of EPYC and Instinct data center products and robust demand for our Ryzen PC processors," said Advanced Micro Devices CEO Dr. Lisa Su in a statement. "Looking forward, we see significant growth opportunities across our data center, client and embedded businesses driven by the insatiable demand for more compute."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results matched or beat analysts' expectations. Indeed, Wall Street was anticipating revenue of $6.7 billion and earnings of 92 cents per share, according to CNBC.
However, sentiment quickly turned negative when AMD provided its outlook on the fourth quarter. The company said it anticipates revenue of approximately $7.5 billion, plus or minus $300 million, which is in-line with analysts' expectations of $7.54 billion.
"AMD's stock was priced for a beat and raise," Summit Insights analyst Kinngai Chan told Reuters. "Clearly, AMD's outlook was not good enough for investors."
Is Advanced Micro Devices stock a buy, sell or hold?
Advanced Micro Devices has whittled its year-to-date lead to roughly 2% following Wednesday's post-earnings plunge. Still, Wall Street remains mostly bullish on the semiconductor stock.
According to S&P Global Market Intelligence, the average analyst target price for AMD stock is $186.96, representing implied upside of more than 24% to current levels. Additionally, the consensus recommendation is Buy.
However, financial services firm Oppenheimer has a Perform rating (equivalent to a Hold) on the large-cap stock.
"We remain cautious toward AMD's ability to deliver a profitable long-term business model as the second horse in the secularly declining PC market," says Oppenheimer analyst Rick Shafer. "We see financially and technologically stronger Nvidia (NVDA) and market-leading Intel (INTC) strengthening their positions in both CPU and GPU, challenging AMD's revenue and gross margin (GM) trajectory."
What's more, Shafer believes Advanced Micro Devices "faces structural challenges from Arm Holdings (ARM), and with valuation above peers, we view risk/reward as balanced here."
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Small Businesses Are Racing to Use AI
The Kiplinger Letter Spurred on by competitive pressures, small businesses are racing to adopt AI. A recent snapshot shows the technology’s day-to-day uses.
-
The Me-First Rule of Retirement Spending
Follow the 'Me-First" rule and you won't have to worry about running out of money when the stock market goes south.
-
I'm a Financial Planner: Could Partial Retirement Be the Right Move for You?
Many Americans close to retirement are questioning whether they should take the full leap into retirement or continue to work part-time.
-
From Mortgages to Taxes to Estates: How to Prepare for Falling Interest Rates
As speculation grows that the Federal Reserve will soon start lowering interest rates, now is a good time to review your financial plans for housing, estate, taxes, investing and retirement to make the most of potential changes.
-
This Is How Lottery Winners Build Lasting Legacies, From a Financial Professional
Winning a massive lottery jackpot, like the recent $1.4 billion Powerball, requires seeking immediate legal and financial counsel, protecting your identity and winnings and planning your legacy.
-
S&P 500 Slips Ahead of Fed Week: Stock Market Today
All eyes are on the Federal Reserve ahead of next week's critical policy meeting.
-
September Fed Meeting: Live Updates and Commentary
The September Fed meeting is a key economic event, with Wall Street keyed into what Fed Chair Powell & Co. will do about interest rates.
-
I'm an Investment Strategist: This Is How the Fed's Next Rate Move Could Impact Your Wallet
Interest rate cuts might be coming, which could affect everything from your credit card debt to your mortgage. It's smart to prepare now — here's how.
-
I'm a Retirement Planner: These Are Three Common Tax Mistakes You Could Be Making With Your Investments
Don't pay more tax on your investments than you need to. You can keep more money in your pocket (or for retirement) by avoiding these three common mistakes.
-
Want to Shave 10 Hours Off Your Workweek? A Startup Expert Shows How AI Can Help
Artificial intelligence is overhauling how companies operate, freeing up entrepreneurs and their workers to skip the menial stuff and get down to business.