Shares of AMD (AMD) plummeted 15% on Thursday, Oct. 25, after the chipmaker missed third-quarter earnings and revenue estimates.
AMD reported EPS of 9 cents vs. consensus estimates of 12 cents, according to FactSet, while revenue of $1.65 billion fell short of estimates of $1.70 billion.
Revenue was up 4% year over year but down 6% from the previous quarter. The company attributed the annual increase to overall growth in the Computing and Graphics segment, but the sequential decline to lower demand for its graphics products.
"We delivered our fifth straight quarter of year-over-year revenue and net income growth driven largely by the accelerated adoption of our Ryzen, EPYC and datacenter graphics products," said Dr. Lisa Su, AMD president and CEO, in a press release. "Client and server processor sales increased significantly although graphics channel sales were lower in the quarter."