Advanced Micro Devices (NASDAQ: AMD) failed to impress Wall Street in late October despite posting strong third-quarter results and a decent outlook, with revenue jumping 25% year over year and net income skyrocketing to $110 million from last year's $27 million. AMD shares plunged 13% the day after the results came out as the company didn't provide much clarity about future sales.
The company skipped providing details about a recently closed patent licensing deal, keeping investors in the dark about how much it is contributing to its revenue and earnings. This sparked speculation that AMD's new chips aren't selling as well as expected, and it might have missed estimates if there was no licensing deal in place.
Ryzen is an AMD brand. Image Source: AMD
Source: Fool.com