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 revenue outlook tops estimates as data-center sales rise 97%
Shares gained more than 8% in extended trading after AMD projected fourth-quarter revenue of about $17 billion, above the $16.23 billion analyst estimate.
AMD said on November 3 that it expects revenue for the fourth quarter to reach about $17 billion, with a range of plus or minus 3%, as demand for its AI chips supported growth. The forecast exceeded the $16.23 billion average analyst estimate compiled by LSEG.
The chipmaker reported $13.38 billion in third-quarter revenue, an increase of 45% and above expectations of $13.09 billion. Its data-center business generated a record $8.55 billion, up 97%, surpassing the $8.20 billion estimate. Adjusted earnings of $2.09 per share also beat the $1.95 forecast.
AMD shares rose more than 8% during extended trading, adding to a stock price that had more than doubled during the year. Other chip stocks gained, with Intel up 2%, Nvidia rising more than 1% and Broadcom advancing 1.2%.
As it expands its competition with Nvidia beyond individual chips, AMD has begun producing its Helios rack system. The product combines the MI455X accelerator with new Venice server chips, with a larger production ramp-up planned for the fourth quarter. Meta is testing the initial systems.
Under a February agreement, AMD is to supply Meta with up to $60 billion in AI chips over five years. The arrangement also gives Meta the option to acquire as much as 10% of AMD.
Performance was weaker in client and gaming, which includes PC chips and console processors. That segment's quarterly sales declined 8% to $3.72 billion, below the $3.79 billion estimate. AMD expects an adjusted gross margin of about 55% for the fourth quarter, compared with 56% in the third quarter.