AMD Stock Heads Lower After Q1 Results

Adjusted Profits of 62 Cents a Share Miss Estimates

Revenue Rises 40% on Data Center Sales Growth

Advanced Micro Devices Inc. (AMD) shares fell in late trading on Tuesday after the company reported first-quarter results that slightly missed guidance and Street estimates. The chipmaker reported adjusted profits of 62 cents a share, below the consensus estimate of 63 cents. Revenue rose 40% to $5.9 billion, driven by strong demand for its data center products. AMD's results come amid a broader sell-off in the semiconductor sector. The PHLX Semiconductor Index has fallen more than 20% from its peak in November. Analysts said AMD's results were solid, but the market was disappointed by the company's guidance for the current quarter. AMD forecast revenue of $6.3 billion to $6.7 billion, below the consensus estimate of $6.82 billion. "AMD's results were slightly below expectations, but the company's long-term growth story remains intact," said analyst Patrick Moorhead of Moor Insights & Strategy. "AMD is well-positioned to benefit from the growing demand for data center and high-performance computing products."