AMD Stock Slumps 7% on Gloomy AI Chip Sales Forecast

May 3, 2024
AMD Stock Slumps 7% on Gloomy AI Chip Sales Forecast
  • AMD's stock price fell by 7% in extended trading due to its 2024 AI chip sales forecast falling short of investor expectations.

  • The company's projected AI chip sales of $4 billion, despite being $500 million higher, did not meet Wall Street's anticipations, trailing behind Nvidia's AI market success.

  • A significant portion of AMD's revenue from traditional server semiconductors is threatened by the rising demand for AI server chips.

  • AMD faces additional headwinds from an uncertain gaming market demand and declining revenue in the embedded segment.

  • Despite these market challenges, AMD's data center business reported a substantial 80% revenue increase to $2.3 billion.

  • For the second quarter, AMD's gross margin forecast exceeded analyst predictions.

  • AMD's first-quarter revenue slightly topped analyst projections at $5.47 billion, with adjusted per-share earnings of 62 cents.

Summary based on 13 sources

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Why AMD Stock Sank Today

The Globe and Mail • May 1, 2024

Why AMD Stock Sank Today

AMD slides on muted forecast for AI processors

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