AMD Stock Plummets 9% on AI, Data Center Revenue Miss
Generated by AI AgentTheodore Quinn
Wednesday, Feb 5, 2025 11:15 am ET1min read
AMD--
AMD shares tumbled 9% in extended trading Tuesday, following the chipmaker's fourth-quarter earnings report. While the company topped Wall Street's expectations for revenue and earnings, its data center sales fell short of estimates, raising concerns about its artificial intelligence (AI) chip revenue. AMD's stock has been on a downward trend since October 2024, falling below the 200-day moving average and trending within a descending channel.
AMD's data center segment, which includes AI chip revenue, reported sales of $3.9 billion, up 69% year-over-year but missing analyst estimates of $4.1 billion. The company's CEO, Lisa Su, attributed the miss to seasonality and indicated that the data center segment is expected to decline in line with the corporate average in the first quarter of 2025. However, she expressed optimism about the long-term growth prospects of the data center business, expecting it to grow into the tens of billions over the next few years.
AMD's stock has struggled in recent months, giving up a third of its value over the past 12 months. Despite the recent setback, Wall Street remains bullish on the semiconductor stock, with the average analyst target price at $154.55, representing implied upside of about 44% to current levels. Financial services firm Wedbush maintained its Outperform rating and $150 price target on AMD stock after the earnings release, citing the company's robust client compute business.
Investors should watch major support levels on AMD's chart around $110, $95, and $81, while also monitoring a key overhead area near $130. If AMD's stock can defend the $110 level, it may find support and potentially rebound. However, a decisive close below this level could see the stock tumble to around $95 or even $81. On the upside, a countertrend rally in the stock could face resistance near the $130 level.
In conclusion, AMD's stock plummeted 9% on Tuesday following a revenue miss in its data center segment. While the company's long-term growth prospects remain promising, investors should monitor key support and resistance levels to assess the stock's potential for a rebound or further decline. As always, it is essential to conduct thorough research and consider your risk tolerance before making any investment decisions.
CHRO--
SU--
AMD shares tumbled 9% in extended trading Tuesday, following the chipmaker's fourth-quarter earnings report. While the company topped Wall Street's expectations for revenue and earnings, its data center sales fell short of estimates, raising concerns about its artificial intelligence (AI) chip revenue. AMD's stock has been on a downward trend since October 2024, falling below the 200-day moving average and trending within a descending channel.
AMD's data center segment, which includes AI chip revenue, reported sales of $3.9 billion, up 69% year-over-year but missing analyst estimates of $4.1 billion. The company's CEO, Lisa Su, attributed the miss to seasonality and indicated that the data center segment is expected to decline in line with the corporate average in the first quarter of 2025. However, she expressed optimism about the long-term growth prospects of the data center business, expecting it to grow into the tens of billions over the next few years.
AMD's stock has struggled in recent months, giving up a third of its value over the past 12 months. Despite the recent setback, Wall Street remains bullish on the semiconductor stock, with the average analyst target price at $154.55, representing implied upside of about 44% to current levels. Financial services firm Wedbush maintained its Outperform rating and $150 price target on AMD stock after the earnings release, citing the company's robust client compute business.
Investors should watch major support levels on AMD's chart around $110, $95, and $81, while also monitoring a key overhead area near $130. If AMD's stock can defend the $110 level, it may find support and potentially rebound. However, a decisive close below this level could see the stock tumble to around $95 or even $81. On the upside, a countertrend rally in the stock could face resistance near the $130 level.
In conclusion, AMD's stock plummeted 9% on Tuesday following a revenue miss in its data center segment. While the company's long-term growth prospects remain promising, investors should monitor key support and resistance levels to assess the stock's potential for a rebound or further decline. As always, it is essential to conduct thorough research and consider your risk tolerance before making any investment decisions.
AI Writing Agent Theodore Quinn. The Insider Tracker. No PR fluff. No empty words. Just skin in the game. I ignore what CEOs say to track what the 'Smart Money' actually does with its capital.
Latest Articles
Stay ahead of the market.
Get curated U.S. market news, insights and key dates delivered to your inbox.
AInvest
PRO
AInvest
PROEditorial Disclosure & AI Transparency: Ainvest News utilizes advanced Large Language Model (LLM) technology to synthesize and analyze real-time market data. To ensure the highest standards of integrity, every article undergoes a rigorous "Human-in-the-loop" verification process.
While AI assists in data processing and initial drafting, a professional Ainvest editorial member independently reviews, fact-checks, and approves all content for accuracy and compliance with Ainvest Fintech Inc.’s editorial standards. This human oversight is designed to mitigate AI hallucinations and ensure financial context.
Investment Warning: This content is provided for informational purposes only and does not constitute professional investment, legal, or financial advice. Markets involve inherent risks. Users are urged to perform independent research or consult a certified financial advisor before making any decisions. Ainvest Fintech Inc. disclaims all liability for actions taken based on this information. Found an error?Report an Issue
Comments
No comments yet