Monitor This Key Price Level
Key Takeaways
- AMD shares fell nearly 7% in extended-hours trading on Tuesday after the chipmaker’s full-year data center revenue fell short of some expectations.
- CEO Lisa Su told analysts that the company now sees full-year data center GPU revenue exceeding $4 billion, ahead of its prior forecast of $3.5 billion, but significantly below some analysts’ estimates.
- Monitor the $134 level in AMD shares, an area where the stock may find buying interest near the June 2023 swing high and rising 200-day moving average.
Shares in Advanced Micro Devices (AMD) slumped nearly 7% in extended trading Tuesday after the chipmaker’s disappointing full-year revenue outlook for its closely watched data center GPU segment overshadowed quarterly results that roughly fell in line with Wall Street estimates.
AMD CEO Lisa Su told analysts on the earnings call that the company now sees full-year data center GPU revenue exceeding $4 billion. Although the figure surpassed AMD’s prior guidance of $3.5 billion, some investors had expected a significantly higher upward revision, causing the shares to extend losses in after-hours trade.
The chipmaker forecast current-quarter net sales of $5.7 billion, plus or minus $300 million, roughly in-line with the $5.71 billion estimate compiled by Visible Alpha and representing about a 6% improvement from last year’s equivalent quarter.
For the quarter ending March 30, the Santa Clara, California-based company posted adjusted earnings of 62 cents per share, a penny ahead of the 61-cents-a-share figure expected by analysts. Revenue in the period of $5.47 billion edged out the $5.46 billion consensus view and grew 2% from a year earlier.
Data center revenues in the quarter jumped 80% from the year-ago period, boosted by robust sales of the company’s MI300 chips used for artificial intelligence (AI) data centers. The company said MI300 customers include Microsoft (MSFT), Meta (META), and Oracle (ORCL), adding that it has sold over $1 billion of the chips since their launch in the final quarter of last year.
Performance in the company’s other segments was mixed, with an 80% year-over-year (YOY) jump in client segment revenue helping to offset a 48% drop in gaming sales amid lower chip revenue for game consoles.
### Level to Watch Amid Post Earnings Weakness
Since reaching their all-time high (ATH) at $227.30 in early March, AMD shares have trended steadily lower, with falls accelerating once the price closed below the 50-day moving average.
If the stock continues to weaken post-earnings, investors should monitor the $134 level, an area on the chart where the stock may find buying interest near the June 2023 swing high and rising 200-day moving average.
AMD shares fell 6.9% to $147.43 in after-hours trading. Through Tuesday’s close, the stock had gained about 76% over the past 12 months.
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