Advanced Micro Devices ( (AMD) ) is experiencing volatility. Read on for a possible explanation for the stock’s unusual movement.
Advanced Micro Devices (AMD) saw a notable decline in its stock price after releasing its Q4 earnings report. Despite surpassing Wall Street predictions for earnings and revenue, investors were worried due to disappointing guidance for its data center business and lack of specific revenue forecasts for its AI chips. This raised concerns about AMD’s potential in the burgeoning AI market. Analysts reacted by lowering their price targets, pointing to unmet data center expectations and uncertainties in AI revenue growth. Although AMD’s data center revenue increased by 69% year-over-year, it did not meet expectations, contributing to the negative outlook. The forecast of a 7% sequential decline in data center revenue for Q1 2025 further fueled investor apprehension, leading analysts to revise their price targets downwards. This situation highlights the challenges AMD faces in keeping up its momentum amidst rising competition and shifting market trends.
More about Advanced Micro Devices
YTD Price Performance: -0.94%
Average Trading Volume: 36,900,711
Technical Sentiment Consensus Rating: Hold
Current Market Cap: $185.4B
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