AMD: shares drop despite solid earnings

(CercleFinance.com) - Advanced Micro Devices has reported quarterly profit that beat market expectations, but its "conservative" outlook weighed on its shares on Wednesday.


Late on Tuesday the chip maker reported fourth-quarter net profit that increased tenfold, on a 53% jump in revenues, driven by robust demand for high-performance computing across PCs, gaming and data centers.

Despite these solid results, some analysts said the company's competitive dynamics are now "stabilizing."

AMD projected first-quarter revenue of approximately 3.2 billion dollars, up approximately 79% year-on-year, but down 1% quarter-to-quarter, which prompted investors to question AMD's implied growth.

The shares were down over 5% after this report.

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