AMD shares fell after announcing financial results

Last week, many companies shared their financial achievements in the third quarter of this year with their investors and the rest of the world. Some of them could boast of an increase in profits, but others had to take the effects of lower turnover on a pale.

So AMD shares fell after the announcement of financial results, which did not significantly undermine the confidence of the CEO. Analysts expected much higher revenues of the company, which, combined with the general slump in the technology market, resulted in exactly an 8.51% drop in the price per share. The day before the announcement, one cost $ 22.79, which was radically changed in the next hours, bringing the price down to $ 19.53. The following days also brought no respite and temporary gains were immediately countered by declines. At the time of writing this post, one share costs only $ 17.63. The company’s revenue, however, was really high, because compared to the same period in the previous year, there was a 40% improvement. The problem is that expected $ 1.7 billion in revenue has dropped by a full $ 50 million.

This is probably due to the not very good period for AMD, which was influenced by the premiere of new Intel Core, GeForce RTX cards, a decline in interest in cryptocurrencies and, above all, the lack of new products. The company’s situation will probably improve after the premiere of processors powered by the Zen 2 architecture and Navi graphics cards. While we will wait for the latter until mid-2019, the first EPYC processors using the 7nm process and improved architecture will appear in a few months. There is no point in counting on the success of the refreshed Radeon RX 590 and the Radeon Instinct series.

Also read: Radeon RX 590 Red Devil confirms the new GPU from AMD

Source: Venturebeat