AMD now -15.3% AH due to light Q3 outlook


AMD expects Q3 revenue to be up 2% Q/Q (+/- 3%). That's unfavorable to a consensus for 9% Q/Q growth.

Computing Solutions sales (PC/server CPU) +1% Q/Q and -20% Y/Y in Q2. Division op. income was $9M. CPU ASPs rose Q/Q and Y/Y, but volumes fell (share loss).

Graphics & Visual Solutions sales (GPUs, embedded/console) +5% Q/Q and +141% Y/Y. GPU revenue fell Q/Q due to lower channel sales (partly offset by desktop OEM and professional GPU growth). GPU ASPs fell Q/Q and Y/Y.

Q2 gross margin was 35%, flat Q/Q and down from 41% a year ago. GM has been pressured in recent quarters by a mix shift towards console processor sales.

Q2 results, PR

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Comments (22)
  • jgcaap
    , contributor
    Comments (95) | Send Message
     
    beautifull
    17 Jul 2014, 04:56 PM Reply Like
  • Vlad Hristov
    , contributor
    Comments (2918) | Send Message
     
    Yes, beautiful indeed, so I can buy even more on a lower levels. Should have shorted them, but chickened out.
    17 Jul 2014, 05:07 PM Reply Like
  • 3D Investing
    , contributor
    Comments (1552) | Send Message
     
    There's no way Q3 will only see an increase of 2%. That's probably very conservative. They probably didn't want to miss another ER because of Q2's retail channel GPU shipment drop. I would bet Q3 will have a massive beat in revenue.
    17 Jul 2014, 05:47 PM Reply Like
  • geekinasuit
    , contributor
    Comments (3107) | Send Message
     
    Yeah I'm still shaking my head over that 2% Q3 outlook. I did not expect Q2 to be a big deal and I did not expect Intel's PC success to help AMD all that much. What I was uncertain of, is how far the drop would be if there was one, I bought in fairly low and want to cash out bigger later on in the year. Maybe I should have sold the lot, it's still dropping.

     

    The Q&A will be tough, listening now ....
    17 Jul 2014, 05:52 PM Reply Like
  • 3D Investing
    , contributor
    Comments (1552) | Send Message
     
    The conservative estimate for Q3 is probably because they don't know when the semi custom NDA will be lifted and in case GPU doesn't recover.

     

    One of the largest business class PC buyer is the government. However, the current contracts with the government does not include AMD's line up. That will be updated and we will see traction in business class because the government tend to go more towards value oriented systems.
    17 Jul 2014, 08:37 PM Reply Like
  • geekinasuit
    , contributor
    Comments (3107) | Send Message
     
    I got the sense from comments made during the CC that they are now counting mostly on semi custom as their biggest bread winner going forward across the board. Given the reiteration of expected one or two semi custom wins, it could very well be NDA holding them back but who knows for sure. They did state clearly that the semi wins are expected to be $250-$500MM over the life time, but how long is the life? I'm not sure they said, or if they said $250-$500 each or combined. Need to read the transcript when it surfaces.
    17 Jul 2014, 08:46 PM Reply Like
  • 3D Investing
    , contributor
    Comments (1552) | Send Message
     
    from previous CC, they said $200-500M each.
    17 Jul 2014, 09:36 PM Reply Like
  • jgcaap
    , contributor
    Comments (95) | Send Message
     
    i just cant understand this. the revenue was up, and the shares are down just because it didnt beat, and was around 15% less? why not just 5%? i cant understand it.. anyway. i'm quitting AMD after returning to the original price
    17 Jul 2014, 05:50 PM Reply Like
  • cn_habs
    , contributor
    Comments (578) | Send Message
     
    When has the stock market been rational? The traders have been shorting it for a while now...
    17 Jul 2014, 06:07 PM Reply Like
  • jgrizz48@gmail.com
    , contributor
    Comments (13) | Send Message
     
    it'll be interesting as to where AMD will be sitting after tommorrows close
    17 Jul 2014, 08:02 PM Reply Like
  • Vlad Hristov
    , contributor
    Comments (2918) | Send Message
     
    I have my stop order at 3.30. Load up the truck again and wait.
    17 Jul 2014, 09:23 PM Reply Like
  • True Candle
    , contributor
    Comments (69) | Send Message
     
    what if it won't go that much down. Don't miss it.
    18 Jul 2014, 07:21 AM Reply Like
  • gzubeck
    , contributor
    Comments (64) | Send Message
     
    Rory read makes more money shorting his own stock. This is strictly my own opinion and cannot be proved. There is no way that a company can operate like this without gross incompetence. I could sit around the bar drinking a beer and writing a better business model on a cocktail napkin.
    17 Jul 2014, 07:24 PM Reply Like
  • xtian13
    , contributor
    Comments (420) | Send Message
     
    markets are irrational...
    18 Jul 2014, 03:47 AM Reply Like
  • D. Appleton & Company
    , contributor
    Comments (706) | Send Message
     
    This is what happens when you buy a third class chipmaker instead of a best of breed in the sector. You get smashed.
    17 Jul 2014, 08:17 PM Reply Like
  • primeafk
    , contributor
    Comments (26) | Send Message
     
    ......
    17 Jul 2014, 09:01 PM Reply Like
  • Vlad Hristov
    , contributor
    Comments (2918) | Send Message
     
    @Emmanuel.

     

    Actually AMD has one of the best products in the market, and competes with lot bigger players as NVDA and INTC, so their existence is very fragile, but coming from the ashes is always hard to do, and the juice is sweeter when you get it.
    17 Jul 2014, 09:25 PM Reply Like
  • jgrizz48@gmail.com
    , contributor
    Comments (13) | Send Message
     
    SORRY EMANUEL ...BUT IF THAT WERE TRUE I WOULD BE SITTING ON THE BEACH WITH A BABE IN ONE HAND A COLD BEER IN THE OTHER HAND
    18 Jul 2014, 04:56 PM Reply Like
  • ephud
    , contributor
    Comments (4629) | Send Message
     
    Another loss...

     

    At some point shareholders are going to have to question whether or not Rory Reed's vision can ever work. He's had plenty of time and still the losses mount up. The only thing he really has going for him now is nobody else would take the job...
    17 Jul 2014, 08:24 PM Reply Like
  • Shaduc
    , contributor
    Comments (3004) | Send Message
     
    " nobody else would take the job..."

     

    Sounds like Jerry Sanders!
    17 Jul 2014, 09:05 PM Reply Like
  • ephud
    , contributor
    Comments (4629) | Send Message
     
    Shaduc

     

    "Sounds like Jerry Sanders!"

     

    No. From all indications, Rory Reed is a decent honorable person. He's nothing like Jerry Sanders.
    17 Jul 2014, 09:18 PM Reply Like
  • Shaduc
    , contributor
    Comments (3004) | Send Message
     
    I always wondered in the 90s why Founder Sanders kept his job, as AMD only had the x86 legal battle.

     

    ... compared to the superiority of Intel chips! What has changed (sorry for that simplification)?

     

    But I was comparing the statement "who would want to do this job."

     

    I wouldn't know any details of Sanders or haven't either bothered reading Amd's wikipedia page.

     

    If Rory Reed is a decent, honourable person is another legitimate reason why he was thrown out of Lenovo (as its superficial president).
    17 Jul 2014, 09:52 PM Reply Like
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