AMD shares fall 9% on poor quarterly results

The shares of Advanced Micro Devices (AMD), the American manufacturer of microprocessors, fell 9.2% on Wednesday on the NASDAQ, after presenting its report of results for the first quarter of the year where it detailed losses of 139 million dollars.

The company lost more than 13,341 million dollars in market value, after reporting a 9% year-on-year drop in its revenue for the quarter, which went from 5,887 million to 5,353 million dollars.

Its main business segment, the manufacture of microchips oriented to consumer electronics and office automation, had a 65% drop in revenue in the first quarter of 2023, to 739 million dollars.

AMD detailed in its report to NASDAQ that the division of processors focused on gaming (video games) suffered a decline of 6.3% in its sales for the quarter.

“Three years ago there was an insufficient supply of microchips, everyone was buying graphics cards to mine cryptocurrencies. Well, that stage has already passed and that has caused a significant drop in the demand for semiconductors,” explained Amín Vera, financial director at Invala Family Office.

lower demand

Kevin Ortiz, an independent analyst, said that in addition to the drop in cryptocurrency prices, the return to offices and the reduction in hiring by companies has also impacted the demand for computer equipment.

This Wednesday the shares of its direct competitor, Intel, rose 2.96% to $30.65 per unit on the NASDAQ Composite.

“At the time that AMD showed a decline in sales, some investors bet on Intel thinking that it could be recovering part of the market that it had lost to AMD,” explained Kevin Ortiz.

However, the Philadelphia semiconductor index fell 1.32% to 2,957.4 units, while the rest of the sector’s issuers reported losses on the Stock Market.

The papers of other companies in the sector such as Qualcomm (-2.82%), NVIDIA (-1.45%), Texas Instruments (-0.36) and TSMC (-0.31%) also suffered falls during the day.

In joint market value, these stations lost more than 27.630 million dollars, according to data from the Economática site.

victor.barragan@eleconomista.mx