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AMD Stock Reported a Beat, So Why Is the Stock Not Moving?

By Neil Rozenbaum – Oct 27, 2021 at 11:35AM

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The semiconductor company reported great earnings and showed no signs of growth slowing down.

In this video, I will be going over AMD's (AMD 0.32%) Q3 earnings report. The company beat estimates across the board and raised full-year revenue guidance. It may be catching up to Intel (INTC -6.41%), although there's still a ways to go. You can find the video below, but here are some of the highlights. 

Earnings summary

The company reported earnings per share of $0.73, beating estimates of $0.67, and revenue of $4.30 billion, beating estimates of $4.12 billion.

  • Revenue grew 54% year over year (YOY) and 12% quarter over quarter (QOQ).
  • The computing and graphics segment's revenue was $2.4 billion, up 44% YOY and 7% QOQ.
  • The enterprise, embedded, and semi-custom segment's revenue was $1.9 billion, up 69% YOY and 20% QOQ. The increases were driven by higher EPYC processor (data center processors) and semi-custom product sales (gaming consoles such as the Xbox Series X and PlayStation 5).
  • Gross profit grew 70% YOY to $2.08 billion, and gross margin came in at 48%, up 450 basis points.
  • Earnings per share grew 134% YOY and 29% QOQ.
  • Operating income doubled year over year. 
  • The company raised full-year 2021 revenue guidance to growth of approximately 65%, up from prior guidance of 60% growth. 

For the full insights, do watch the video below, and consider subscribing. 

*Stock prices used were the closing prices of Oct. 26, 2021. The video was published on Oct. 27, 2021.

Neil Rozenbaum owns shares of Intel. The Motley Fool owns shares of and recommends Advanced Micro Devices. The Motley Fool recommends Intel and recommends the following options: long January 2023 $57.50 calls on Intel and short January 2023 $57.50 puts on Intel. The Motley Fool has a disclosure policy. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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