AMD reported third-quarter results beating analysts' forecasts. The stock closed the additional session on November 3 at $508.20, up 5% from the main close on Nasdaq.
AMD is the second-largest maker of processors and accelerators for artificial intelligence after Nvidia. Data center revenue nearly doubled and for the first time accounted for 64% of all sales versus 47% a year earlier.
Additional session - trading after the official exchange close.
For a trader this is an overnight story: the main move happened before the New York open.
What did the report show?
- $13.38 billion - revenue, 45% more than last year's $9.25 billion against a consensus of $13.09 billion
- $2.09 - adjusted earnings per share versus the expected $1.95
- $8.55 billion - a record for the server segment
Consensus - the average analyst forecast.
Guidance stronger than expected. For the fourth quarter the company expects about $17 billion, plus or minus 3%, which is $800 million above the market's $16.2 billion. AMD guided gross margin at 55%, slightly below the average estimate of 55.3%.
Where is the weak spot?
The consumer segment declined. Client and gaming sales together brought in $3.7 billion.
- minus 8% - client and gaming products combined
- minus 40% - the gaming segment, which is linked to the memory shortage
Why didn't the rally hold?
- Overnight peak. At 00:40 Moscow time the stock reached $530.38, up 9.6%.
- Reversal. The stock then gave back half the gain: Nasdaq futures turned lower on news of Democratic successes in the midterm elections.
- Low bar. On Monday AMD fell 7.5%, to $466.84, so the report was met after a sell-off.
Against this backdrop Intel barely moved: $60.55 at the close and $60.01 after the session.
What's next?
Lisa Su, AMD CEO: demand for agentic artificial intelligence is "just beginning." The company expects server revenue to double in 2027.
The next reports and US market data are handy to keep at hand in the economic calendar. If you trade individual stocks, it's worth choosing a challenge with a suitable list of instruments in advance.
Did you trade AMD in the evening session?
Reports of this caliber come out at night Moscow time. By the New York open most of the move is already priced in. After that, the account rules decide: US stocks are far from being on the instrument list of every prop firm, the extended session is closed entirely at many, and entering in the minute a report is published is explicitly called a violation somewhere. It's better to read these lines on a calm market, not on the night of the next earnings. In the selection you can immediately see which programs allow stocks and trading on reports, and which don't.