AMD's stock plummeted by as much as 16% in a stunning one-day drop, marking its worst performance since October 2018. The slump came after the company announced first-quarter sales that fell short of investor expectations, casting doubt on AMD's ability to capture significant gains from artificial intelligence spending.
Despite a strong second quarter, with profit rising and AI revenue expected to hit tens of billions of dollars by 2027, investors were left disappointed by the lackluster forecast. The chipmaker's data center business, which accounts for most of its AI-driven sales, saw a 39% surge in revenue to $5.38 billion, beating estimates but raising questions about profit margins.
AMD's struggles with US export restrictions on Chinese markets have also weighed on investors' enthusiasm. While the company reported some positive sales in China, the decline in demand for older-generation chips has raised concerns about diminishing returns from this previously lucrative market.
CEO Lisa Su stuck to her bullish tone, predicting tens of billions of dollars in AI revenue by 2027 and downplaying concerns over component shortages. However, her upbeat remarks failed to stem the tide of investor skepticism, with shares plummeting as much as 16% in a day that saw the biggest intraday decline since October 2018.
The rout has raised questions about AMD's ability to compete with Nvidia in the lucrative AI market and its prospects for meeting growing demand for its chips. As the company continues to navigate trade restrictions and component shortages, investors will be watching closely for any signs of improvement or a clear path forward for this struggling chipmaker.
Despite a strong second quarter, with profit rising and AI revenue expected to hit tens of billions of dollars by 2027, investors were left disappointed by the lackluster forecast. The chipmaker's data center business, which accounts for most of its AI-driven sales, saw a 39% surge in revenue to $5.38 billion, beating estimates but raising questions about profit margins.
AMD's struggles with US export restrictions on Chinese markets have also weighed on investors' enthusiasm. While the company reported some positive sales in China, the decline in demand for older-generation chips has raised concerns about diminishing returns from this previously lucrative market.
CEO Lisa Su stuck to her bullish tone, predicting tens of billions of dollars in AI revenue by 2027 and downplaying concerns over component shortages. However, her upbeat remarks failed to stem the tide of investor skepticism, with shares plummeting as much as 16% in a day that saw the biggest intraday decline since October 2018.
The rout has raised questions about AMD's ability to compete with Nvidia in the lucrative AI market and its prospects for meeting growing demand for its chips. As the company continues to navigate trade restrictions and component shortages, investors will be watching closely for any signs of improvement or a clear path forward for this struggling chipmaker.
. I mean, they're still gonna hit those tens of billions in AI revenue by 2027 and all that, but it seems like everyone's losing faith in the company right now 
.
. But at the same time, I'm still optimistic about their chances... maybe they're just going to surprise everyone with some major innovation or something 
.
. So maybe AMD just needs some time to figure things out and navigate those issues? Either way, I'm keeping an eye on them 
And it's not like the company is gonna let these numbers slide - CEO Lisa Su is already talking up their AI game for 2027 
. They're basically saying that this one quarter doesn't count for anything and they should just give up on their entire strategy 
. Newsflash: companies like AMD have more than just one quarter to turn things around 
. And let's not forget, those US export restrictions are still a thing... that's gotta be weighing on their minds 
. Anyway, can't wait to see how this plays out 
. AMD's stock is like, totally tanking right now 
. I mean, I get it, first-quarter numbers didn't exactly pop 
. I'm watching how they handle the AI market, because if they can't keep up with Nvidia, they're in trouble 
. I'm keeping an eye on this one, for sure 
they've got the best CEO ever, Lisa Su is so inspiring 
and AI revenue by 2027? that sounds like a total win to me 
I know it's tough with those US export restrictions and component shortages, but I have faith in them 
. The thing is, AI revenue is expected to get HUGE by 2027, but that doesn't mean it's gonna magically solve everything 
. I'm watching how they address these concerns closely, but it's not looking too promising right now 
.
. Maybe this is just a minor speed bump on the road to AI domination? 
Only time will tell 
but still, investors are being super cautious. maybe the US export restrictions on china are having a bigger impact than we thought? anyway, Lisa Su's predictions about AI revenue by 2027 seem kinda rosy to me 
i get it, they had a bad q1 report but 16% drop is crazy!! 
hopefully they can turn it around soon, amds needs a win badly 
component shortages are one thing, but trade restrictions on chinese markets have to be affecting them somehow. lisa su said she's got a clear path forward, but it seems like investors aren't buying it