AMD stock

AMD stock is under heavy pressure after the chipmaker's CEO issued a warning about slow PC sales and supply-chain woes.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. Still, there may be a bargain here for intrepid traders as this challenged chipmaker navigates tough tech-market terrain. Also, the shares are at a 52-week low. [AMD](https://investorplace.com/stock-quotes/amd-stock-quote/)) CEO Lisa Su gave investors some tough talk. Investors should just accept that AMD’s upcoming quarterly report will probably be worse than previously expected. There might be a silver lining for prospective, value-focused investors, however.

Advanced Micro Devices (AMD) finally slipped up, just as Nvidia (NVDA) did a few months ago. Shares of the veteran chipmaker are down 8% on Friday, ...

While the tide is clearly not working in AMD’s favor at the moment, it’s been under pressure all year. If the shares revisit this key breakout area, it could be a buying opportunity for long-term investors. Above that puts prior range support in play near $74, along with the declining 10-week moving average. estimates of $6.71 billion and a prior guide of roughly $6.7 billion. [reported](https://realmoney.thestreet.com/investing/stocks/arrogant-fed-heads-amd-disappoints-lilly-thrills-enough-carnage-for-now-16104705) its preliminary third-quarter [revenue](https://www.thestreet.com/dictionary/r/revenue) of $5.6 billion vs. [AMD](https://www.thestreet.com/quote/AMD)) finally slipped up, just as Nvidia ( [NVDA](https://www.thestreet.com/quote/NVDA)) did a few months ago.

Dire forecasts from Samsung Electronics Co Ltd and Advanced Micro Devices Inc sent chip-related shares lower on Friday, sparking fears that a slump in ...

Shares of major U.S. Register now for FREE unlimited access to Reuters.com "We still think the industry is heading for its deepest downcycle in a decade, thanks to high supply chain inventories and falling end demand," Jefferies analysts said. [preliminary results](/technology/samsung-elec-q3-profit-likely-fell-32-demand-slumped-downturn-2022-10-06/) add to a flurry of earnings downgrades and gloomy forecasts. [(NVDA.O)](https://www.reuters.com/companies/NVDA.O), Intel Corp [(INTC.O)](https://www.reuters.com/companies/INTC.O), Qualcomm Inc [(QCOM.O)](https://www.reuters.com/companies/QCOM.O) and Micron Technology Inc [(MU.O)](https://www.reuters.com/companies/MU.O) were down between 1.2% and 6.0%, weighing on smaller peers such as Marvell Technology Inc [(MRVL.O)](https://www.reuters.com/companies/MRVL.O) and Applied Materials Inc [(AMAT.O)](https://www.reuters.com/companies/AMAT.O). [(005930.KS)](https://www.reuters.com/companies/005930.KS) and Advanced Micro Devices Inc sent chip-related shares lower on Friday, sparking fears that a slump in demand for semiconductors could be much worse than expected.

Advanced Micro Devices issues a revenue warning and Samsung Electronics posts a 32% drop in third-quarter operating profit.

The company said it now expects third-quarter revenue of $5.6 billion, down from a previous forecast for $6.7 billion plus or minus $200 million. Wall Street has begun having its say. [miss its revenue guidance](https://www.barrons.com/articles/amd-revenue-warning-third-quarter-51665089608?mod=hp_LEAD_5&mod=article_inline) in the third quarter, citing weakening demand for PCs.

Advanced Micro Devices Inc. shares fell in the extended session Thursday after the chip maker cut its already conservative forecast because a drop in PC sales ...

"The gross-margin shortfall to expectations was primarily due to lower revenue driven by lower client processor unit shipments and average selling price," AMD said. "While our product portfolio remains very strong, macroeconomic conditions drove lower-than-expected PC demand and a significant inventory correction across the PC supply chain." In early August, AMD held firm on its revenue forecast of $26 billion to $26.6 billion for the year, and forecast third-quarter revenue of $6.5 billion to $6.9 billion, which at the time fell below the Wall Street consensus, and gross margins of 54%.

Shares Analysis by Haris Anwar/Investing.com covering: Intel Corporation, Advanced Micro Devices Inc, Bank Of Montreal, Advanced Micro Devices Inc. Read ...

But this is the time for long-term investors to go and pick stocks that have the power to get back on a growth trajectory quickly. “Our view is that we see a path to sustained share gains against Intel...and we do not need Intel to mis-execute for the thesis to work. The steep decline in sales from one of the most-loved chip-makers shows that the worsening macroeconomic conditions are destroying demand quickly and forcing companies to hold back on their spending. Be sure to tune in every Thursday! These losses are worse than the The California-based AMD late yesterday gave its preliminary sales numbers for the third quarter that missed projections by more than $1 billion.

Advanced Micro Devices (NASDAQ: AMD) stock is under pressure after the company announced preliminary third-quarter earnings. Is AMD stock a buy now, ...

The Motley Fool has positions in and recommends Advanced Micro Devices. [Eric Cuka](https://boards.fool.com/profile/TMFFiredUpWealth/info.aspx) has positions in Advanced Micro Devices. The Motley Fool has a [disclosure policy](https://www.fool.com/legal/fool-disclosure-policy/). [ten best stocks](https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&impression=8cb3523e-5cf4-4fa9-8d56-675fb398027e&url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-foolcom-sa-bbn-dyn%3Faid%3D8867%26source%3Disaeditxt0010449%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6312%26ftm_veh%3Dbbn_article_pitch%26company%3DAdvanced%2520Micro%2520Devices&utm_source=nasdaq&utm_medium=feed&utm_campaign=article&referring_guid=057e575d-8341-4767-92e7-78ef561a370c) for investors to buy right now... When our award-winning analyst team has a stock tip, it can pay to listen. Is AMD stock a buy now, or is it headed lower?

In this video, I will review AMD's (NASDAQ: AMD) preliminary financial results for the third quarter and explain why it's not all doom and gloom.

The Motley Fool has positions in and recommends Advanced Micro Devices. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. His opinions remain his own and are unaffected by The Motley Fool. The Motley Fool has a [disclosure policy](https://www.fool.com/legal/fool-disclosure-policy/). [ten best stocks](https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&impression=4ce7baba-1e17-410b-aeec-2cbf2f68bc08&url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-foolcom-sa-bbn-dyn%3Faid%3D8867%26source%3Disaeditxt0010449%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6312%26ftm_veh%3Dbbn_article_pitch%26company%3DAdvanced%2520Micro%2520Devices&utm_source=nasdaq&utm_medium=feed&utm_campaign=article&referring_guid=d8a20d1b-5050-484a-83e0-99c75b0075ad) for investors to buy right now... When our award-winning analyst team has a stock tip, it can pay to listen.

In the daily bar chart of AMD, below, we can see that the shares gapped lower Friday morning and reached a new 52-week low. Prices remain in a downward trend ...

[Our last review](https://realmoney.thestreet. [OPEC Panicked](/investing/opec-panicked-16104752) [AMD](/quote/AMD.html)) issued a third-quarter revenue warning Thursday after the close of trading.

Advanced Micro Devices (AMD) shares hit a new 52-week-low, falling more than 14% as the chipmaker issued preliminary third-quarter results that widely ...

Adjusted gross margins were roughly 50%, and below the 54% the company had guided to previously. [AMD](https://seekingalpha.com/symbol/AMD)) and several other cloud computing-related semiconductor companies, [noting the group is still likely to benefit from increased spending](https://seekingalpha.com/news/3887876-bofa-reiterates-buy-on-nvidia-marvell-amd-broadcom-credo-even-as-cloud-worries-emerge). [AMD](https://seekingalpha.com/symbol/AMD)) said operating expenses during the period were $1.5B, below the prior guidance of $1.6B. [AMD](https://seekingalpha.com/symbol/AMD)) [said](https://seekingalpha.com/news/3889486-advanced-micro-devices-sinks-as-preliminary-q3-sales-miss-estimates-by-wide-margin) its third-quarter sales would be about $5.6B, compared to estimates of $6.71B. [AMD](https://seekingalpha.com/symbol/AMD)) Su added that the company's data center, embedded and gaming segments continued to show strength and the company's business model and balance sheet will help it navigate the downturn. [AMD](https://seekingalpha.com/symbol/AMD)) shares hit a new 52-week-low, falling nearly 14% as the chipmaker issued [preliminary third-quarter results](https://seekingalpha.com/news/3889486-advanced-micro-devices-sinks-as-preliminary-q3-sales-miss-estimates-by-wide-margin) that widely missed estimates.

Investors are panicking after AMD missed on its third quarter results. Read more to see bull and bear cases for AMD over the next five years.

In the worst case, perhaps due to an extremely poor macro environment impacting the cyclical semiconductor industry and/or unexpected success from AMD's competition, AMD fails to generate much growth and has a very negative return due to multiple contraction. Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. AMD is right in the middle of the pack at 1.1. Although AMD is growing off of a larger revenue base in a potentially weaker economy, I still believe that growth between 15% and 19% is achievable over the next five years. That said, AMD could still produce respectable and market-beating returns of a more modest form. While there is perhaps some room for further operating margin improvement and further P/S multiple expansion that would likely accompany it, there's simply no way that AMD's P/S or P/E multiple will 14x again in the next decade. If AMD manages to grow revenue at an 11% CAGR, then its EPS CAGR may be closer to 15%, especially if the company continues to beat analyst estimates as it often has in the past. Assuming that growth lands somewhere in the 11-19% range, AMD is still positioned for respectable growth going forward, even as client revenue has fallen off a cliff. Going forward, AMD will likely continue to gain some share in PCs, but now that it has over 50% share there's less room for rapid growth in this mature market. Adjusting for AMD's recently announced Q3 results, data center is now the largest segment in addition to being the fastest growing. Nevertheless, AMD remains in an improving competitive position with strong secular tailwinds at its back and will likely be a market-beating investment from the current valuation. In this article, I'll look at where AMD could be in five years and whether investors should expect strong returns going forward.