AMD Experiences 12% Plunge in Shares in After-hours Trading

Advanced Micro Device, leading chip maker in the world, has spent 2017 slowly launching new products that provided outstanding performance for servers, cloud data centers, and personal computers. In the third financial quarter, that resulted into overall growth in revenue by 26% and gross income rose to US$71 million ā€“ a sign of first substantial profits since the year 2014.

But the Wall Street was not convinced with those fiscal results released on October 24, 2017. Stock price of AMD, which had increased by 26% of far this season, plunged to as low as 12% in the after-hours stock trading.

The dip happened even though the sales revenue was accounted for US$1.6 billion, which was more than the estimated figure of US$1.5 billion by the analysts. This revenue also adjusted earnings per stock of 10 cents surpassed the average projection of 8 cents. The net income of US$71 million was the recorded to be the first since the mid of 2016 ā€“ though that was associated to the trading of some production facilities. The last net profit was recorded long back in 2014ā€™s third quarter.

The concern is matching the story of increasing interest in the new Ryzen chips of AMD for personal computers, Epyc chips and Verg chips for servers and graphics respective, and the AI processing with a few uncommon items in the fresh report of the quarter.

One issue that AMD seems to be stuck at is patenting and is not ready to give out more details. It only said that its patents were about both graphics and central processors and did not give any information about how much revenue it generated.

 

Author: Rohit Bhisey

As Head of Marketing at TMR Research, Rohit brings to the table over a decade of experience in market research and Internet marketing. His dedication, perseverance, and passion for perfection have enabled him to achieve immense success in his field. Rohit is an expert at formulating new business plans and strategies to help boost web traffic. His interests lie in writing news articles on technology,healthcare and business.

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