Advanced Micro (AMD) Plunges 3.4% on Lowered Q3 Outlook
1min read On April 30, 2025, Advanced Micro's stock dropped 3.4% in pre-market trading.
Advanced Micro's recent financial performance has raised concerns among investors. The company has lowered its revenue and profit expectations for the third quarter due to delayed customer spending, which has exacerbated market worries about potential reductions in AI-related investments. This comes after the company faced accounting issues earlier this year, which had previously put it at risk of being delisted and damaged investor confidence.
The company attributed the delay in sales to "customer platform decisions," pushing some sales into the fourth quarter. advanced micro also reported that its gross margin for the third quarter decreased by 220 basis points compared to the previous quarter, primarily due to increased inventory of older products and additional costs incurred to accelerate the launch of new products.
Despite the challenges, Advanced Micro's management remains optimistic about the future. The company's CEO, Charles Liang, has expressed confidence in the company's ability to achieve growth in 2025, provided that the supply chain can keep up with demand. However, the market's confidence in Advanced Micro will likely take time to recover.
Ask Aime: What's behind Advanced Micro's stock drop, and how will things change for investors?
