NEW YORK, NY / ACCESSWIRE / October 26, 2017 / Advanced Micro Devices may have beat estimates for its third quarter, but it was the fourth quarter revenue that had traders worried. The company said revenue would fall which had traders running to sell. Micron Technology shares also fell into the red feeling AMD's burn on Wednesday but had no remarkable news.
RDI Initiates Coverage on:
Advanced Micro Devices, Inc.
Micron Technology, Inc.
Advanced Micro Devices, Inc. shares closed down a little over 13% in Wednesday trading after the company announced an outlook that had traders very concerned. Despite reporting a strong third quarter financial report, the semiconductor company revealed it is expecting its first revenue drop in seven quarters in its fourth quarter. The company expects fourth-quarter revenue to fall by 12 to 18%. For the third quarter, AMD revealed revenue of $1.64 billion and net income of $71 million. Compared to the year-ago quarter numbers of $1.31 billion and a net loss of $406 million, these were some pretty impressive figures. They also beat Wall Street's estimates. Bob O'Donnell, the president and chief analyst of California-based Technalysis Research LLC, called the selling of as "Crazy." He explained, "Here's a company that's had a difficult time in the past, which is finally starting to deliver an impressive line of products, shows some incredible results, relatively speaking - then gets crushed because the future potential is driving this; it's shortsighted."
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Micron Technology, Inc. shares closed down 1.30% on Wednesday with a little over 31 million shares traded. The American global corporation based in Idaho, had no significant news yesterday but seemed to be riding piggyback on AMD's losses. AMD had a dismal outlook for the fourth quarter which had traders selling off in a frenzy. Despite that, the semiconductor arena is still looking good and traders are hoping the rally continues. Semi-conductor stocks such as Micron and AMD have soared this year. Senior portfolio manager at Synovus Trust, Dan Morgan, commented, "I haven't been this excited about chips in a number of years. The multiples from a historical perspective are far from off the charts."
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