Adeia Shares Drop on Outlook Cut, Patent Litigation Against AMD

By Dean Seal

Shares of Adeia fell after the company cut full-year guidance and said it was suing AMD for infringing on 10 patents from its portfolio of semiconductor intellectual property.

The stock was down 19% at $13.80 Monday. Shares are now in negative territory year-to-date.

The IP licenser said before the opening bell that it has filed patent-infringement litigation against AMD for what Chief Executive Paul Davis called "extensive and unauthorized use of our semiconductor portfolio across its product lines."

AMD's products have used Adeia's semiconductor patents for years to become a market leader, but the companies haven't been able to reach a mutually agreeable resolution for the arrangement, Davis said.

"While we remain open to a mutually beneficial resolution, we are fully prepared to proceed through the entirety of the legal process and we are confident in our ability to achieve a positive outcome," he said.

Seven patents at issue cover hybrid bonding technology while the other three are related to advanced process node technology.

A license agreement Adeia had been pursuing with AMD is now unlikely to close in the fourth quarter as previously anticipated, Davis said, spurring the company to lower its full-year outlook.

Adeia now projects $360 million to $380 million in revenue for the year, down from prior estimates for $390 million to $430 million. Adjusted earnings, which strip out one-time items, are now on track to hit $127.4 million to $139.8 million, instead of $150.5 million to $175.9 million as previously expected.

The revision comes after Adeia posted a third-quarter profit of $8.8 million, or 8 cents a share, compared with $19.3 million, or 17 cents a share, in the same quarter a year earlier.

Adjusted earnings were 28 cents a share. Analysts polled by FactSet had been expecting 35 cents a share.

Revenue rose just 1.4% to $87.3 million, well short of analyst forecasts for more than $100 million, according to FactSet.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

November 03, 2025 11:05 ET (16:05 GMT)