- AMD delivered excellent Q3 results, progressing on nearly every key front.
- There's more to the recent drop than AMD's wider losses and Q4 guidance.
- NVIDIA's latest salvo seems to have spooked investors, and for good reason.
By now, most of us know that
AMD's Q3 Earnings Don't Justify The Correction
AMD's Q3 results delivered on every key front, possibly more than investors could've expected. AMD's Q3 revenue of $1.3 billion beat consensus estimates by a solid ~8%, implying a sequential growth of 27%, and a Year-on-Year (YoY) growth of 23%. AMD's non-GAAP EPS of 3 cents a share, exceeded expectations of zero cents, marking a return to non-GAAP profitability after a gap of six quarters. The chipmaker also restructured its long term debt, which increased GAAP losses for Q3 by ~$61 million but improved the long-term outlook for AMD, strengthening its balance sheet significantly.
AMD raised ~$1.4 billion, using a combination of equity and debt issuances, partly to refinance, and partly pay-off its long-term debt. AMD significantly reduced its