I already delivered some very detailed explanations but obviously as a true long you must love to ignore them.
Actually the stock isn't even down for the day despite the after hours weakness so you should prepare for a REAL drop tomorrow, perhaps down to the $4 area.
The reason the stock is down because of the margin details regarding the console business revealed on the call. Gaming console gross margins will come in at just around 15% compared to 40% for the rest of the business. I guess the most pessimistic analyst estimate was in the mid 20s so far so you might imagine that the analyst community was left scratching their heads on the call.
With console margins that low AMD will have to reach at least the mid-point of the huge upside revenue guidance to turn a profit next quarter.
Moreover the ramp up will happen only in Q3 and Q4 so revenues for Q1 2014 might be down far more than typical seasonality.
Even worse analyst eps estimates for 2014 look way too high now as AMD simply can't turn a net profit for the full year with the core markets remaining in decline and console margins that low.
Additionally If Sony and Microsoft experience slow console sales AMD's top line will be hit really hard and much needed cash flow won't come in.
So plenty of bad news and risks going forward. Add an overhyped stock price and you get the ingredients for a major share price correction tomorrow.
watch the Goldman Sachs guy pointing to exactly the same issues like me tomorrow