Yesterday afternoon, Advanced Micro Devices (NASDAQ:AMD) released its second-quarter 2022 results. The company beat analyst estimates on the top and bottom lines. However, AMD stock gapped down around 5% at the market open today due to Advanced Micro Devices’ soft forward guidance.
The AMD earnings report was highly anticipated on social media sites and in the financial media. For some investors, the company’s results and guidance serve as a gauge of the U.S. microchip market’s health overall.
What the trading community got was a mix of good news and not-so-good news. Starting with the good news, AMD reported Q2 2022 revenue of $6.55 billion, slightly beating the analyst consensus estimate of $6.53 billion. Also, the company’s adjusted earnings per share, or EPS, of $1.05 edged out the consensus estimate of $1.03.
These data points might have been enough to push AMD stock higher, if it weren’t for the company’s forward guidance. For the current quarter, Advanced Micro Devices guided for $6.7 billion in revenue plus or minus $200 million. Analysts, however, had modeled $6.83 billion, so the company’s guidance came up short.
What’s Happening With AMD Stock?
Yesterday, after the release of the company’s earnings results and guidance, the AMD share price quickly dropped 5%. However, the market had all night and early morning to fully digest the info. Consequently, some traders may have reconsidered their positions.
AMD stock still started this morning down around 5%, but it headed toward breakeven after the market opened. Perhaps Wall Street participants decided that AMD’s actual Q2 results were just as important as the company’s third-quarter forecast.
It’s also possible traders were impressed with the company’s Gaming segment sales, which increased 32% year-over-year (YOY) to $1.7 billion. So, as investors mull over the positive and less-than-positive developments in AMD today, the tug-of-war between bulls and bears could continue for quite a while.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.