Skyworks shares fall more than 14% as outlook misses estimates
The chipmaker expects a sequential decline in smartphone revenue and said it completed its Qorvo acquisition after the fiscal fourth quarter.
AMD records $1.07 billion charge tied to OpenAI and Meta warrants
The equity incentives could give each customer roughly 10% of the chipmaker, subject to conditions tied to their chip-purchase agreements.
Advanced Micro Devices said on November 3 that warrants granted to AI customers OpenAI and Meta Platforms resulted in a third-quarter non-cash charge of $1.07 billion, or 66 cents a share. The accounting charge came as chip shipments under the agreements began increasing.
The quarter ended September 26. AMD offered the customers rights to acquire shares as part of agreements securing large chip purchases. In February, it agreed to supply Meta with up to $60 billion in AI chips over five years, with warrants allowing Meta to acquire as much as 10% of AMD if specified milestones are reached.
An earlier agreement with OpenAI gave the startup an option to acquire up to roughly 10% of AMD. Unlike Meta's warrants, OpenAI's include conditions linked to AMD's share price.
Finance chief Jean Hu said shareholders would start facing dilution when the customers meet the conditions for vesting and exercise, including shipment and commercial requirements. She said AMD expects to offer further guidance in 2027 about when those conditions might be satisfied.
If fully vested and exercised, the warrants could allow the customers to acquire shares for as little as a penny each. Their eventual value depends on AMD's stock price at exercise.
AMD also projected faster-than-expected growth in 2027, citing rising data-center sales. Its shares gained 8% in extended trading on November 3.