AMD Stock Under Pressure: AMD's Profit Increase Disappoints

Quarterly Results Below Expectations

AMD's stock price has fallen by 6% in after-hours trading after the company reported its quarterly results, which fell short of analysts' expectations.

The company's revenue increased by 29% to $5.6 billion, but its net income only increased by 7% to $974 million.

Analysts had expected AMD to report revenue of $5.8 billion and net income of $1.02 billion.

Data Center Sales Disappoint

One of the main reasons for AMD's disappointing results was the weakness in its data center business.

Revenue from data center chips fell by 15% to $1.4 billion, due to a decline in sales of its Epyc server chips.

This decline was offset by strong growth in AMD's other businesses, including its gaming and client computing segments.

Slowing PC Market

Another factor that contributed to AMD's disappointing results was the slowing PC market.

PC shipments are expected to decline by 9.5% in 2023, according to Gartner.

This is due to a number of factors, including the rising cost of living, the war in Ukraine, and the ongoing COVID-19 pandemic.

Outlook for AMD

Despite the disappointing results, AMD remains optimistic about its future prospects.

The company expects its revenue to grow by 15% to 25% in 2023, and it is investing heavily in new products and technologies.

AMD is also benefiting from the growing demand for high-performance computing, which is being driven by the rise of artificial intelligence and machine learning.