Why Shares of Advanced Micro Devices Are Slumping Today

Shares of Advanced Micro Devices (NASDAQ: AMD) slumped on Wednesday following the release of the chip company's third-quarter earnings report. AMD managed to beat analyst expectations across the board and raise its full-year revenue guidance, but that wasn't enough to satisfy the inflated expectations built into the stock price. As of 11:56 a.m. EDT, shares of AMD were down 11.6%.

AMD reported third-quarter revenue of $1.64 billion, up 26% year over year and $130 million above the average analyst estimate. Growth was driven by the computing and graphics segment, which produced $819 million of revenue, good for 74% year-over-year growth. AMD has launched a full slate of new products this year, including Ryzen PC CPUs and high-end Vega GPUs, and those products are pushing revenue higher.

Image source: AMD.

Source: Fool.com