Advanced Micro Devices (NASDAQ:AMD) saw its stock fall hard, after quarterly results a day earlier. The company reported an adjusted 60 cents per share on $5.35 billion in revenue, which were both ahead of analyst expectations of 56 cents and $5.3 billion, according to Refinitiv.
Guidance for sales for the current quarter was lower from the company, however, and analysts are now split on how to view the stock.
The first quarter of 2023 is where AMD started to face a much higher bar for year-ago periods thanks to the lapping of the Xilinx acquisition anniversary. After a major revenue warning last year, expectations had certainly dropped, and guidance for the Q1 period was not exactly tremendous.
AMD was calling for a roughly 10% decline in revenues, with the market hoping that Q2 would be the worst of times in year-over-year percentage terms. We've seen these sales peaks and valleys before as the chart below shows, and the blue bars represent Street estimates as of Tuesday.
As it turned out, AMD came in a little better than expected, with total revenues of $5.35 billion beating the street by a little more than $40 million. Data Center revenues were up just slightly over the year ago period. Embedded segment revenues soared as expected, up over 162% primarily thanks to Xilinx, while the Client segment took a major hit down 65%. Gaming revenues were down more than 6%, leading to an overall revenue decline just over 9% as compared to Q1 2022.
AMD shares began Wednesday down $7.10, or 7.9%, to $82.81.
