I also sold my position this morning after the report. They guided almost exactly for where they landed,
revenue 8.7B → 8.71
adj GM 39.5% → 39.5%
adj EPS 1.74 → 1.79
They forecast for next quarter is significantly down though,
revenue 7.9B
adj GM 38.5%
adj EPS 1.43
This guide breaks their streak of them growing revenue, gross margin, and EPS sequentially for many quarters, as all three metrics are guided down for next quarter.
Long story short the consumer side of the business is reducing their inventory they stockpiled rather than purchasing new. It sounds like some of the companies overbought on supply previously and are churning through that inventory.
On the other side of the business things are going well, data center revenue grew 400% yoy and 40% sequentially, accounting for over 50% of total revenue. If I was more inclined to be a buy and hold investor, I’d be okay holding here. However, the sequential guides down was enough for me to sell.