“AMD STOCK CRASH?”

🔻 AMD Stock Sinks 12% After Earnings: Here’s Why Investors Reacted

🔻 AMD Stock Sinks 12% After Earnings: Here’s Why Investors Reacted Shares of Advanced Micro Devices (AMD) plunged nearly 12% on Wednesday after the company’s first-quarter outlook failed to meet some market expectations, despite posting strong quarterly revenue. AMD reported $10.27 billion in revenue for Q4, beating analyst estimates of $9.67 billion. Even with this earnings beat, investors focused more on the company’s forward guidance, which was seen as less aggressive than expected during the ongoing AI chip demand boom. For the first quarter, AMD forecasted revenue of $9.8 billion (± $300 million), compared to expectations near $9.38 billion. While the forecast exceeded consensus, analysts had anticipated even stronger guidance, considering heavy global spending on AI processors and data center hardware. Over the past year, AMD shares had surged more than 100%, driven by strong demand for its AI accelerators and data center chips, putting pressure on the company to deliver exceptional growth projections. Market analysts pointed out that expectations were already extremely high. Some also noted that China-related revenue shipments in the quarter were unexpected and not fully reflected in market forecasts, which reduced the impact of the earnings beat. Despite the stock decline, data center demand remains strong, and AMD has signaled large-scale future contracts for its AI hardware. AMD continues to strengthen its position in the AI chip race alongside Nvidia. The company has confirmed long-term supply agreements involving large-scale deployments of its Instinct GPUs, with multi-year expansion plans tied to growing AI infrastructure demand.