Following on the earlier "AMD earnings are coming. Can they help justify the stock’s huge increase?" to which our one word introduction was:
No
In late after-market action the stock is down $11.17 (-6.49%) $160.89 last.
From Reuters via Yahoo Finance, January 30:
AMD boosts AI chip forecast by $1.5 billion - not enough for Wall Street
Chipmaker AMD on Tuesday boosted its 2024 forecast for its artificial intelligence (AI) processors by $1.5 billion. Investors wanted more.
AMD's near doubling of its AI processor projections to $3.5 billion was not enough to meet Wall Street's lofty projections for the company's AI fortunes, or assuage the pain of a significant drop in its programmable chip and videogame businesses.
It also forecast first-quarter revenue below Wall Street estimates on Tuesday.
"AMD delivered an underwhelming quarter, with a notable miss on operating income and operating margins standing out the most," Investing.com analyst Jesse Cohn said.
"The company had little margin for error amid lofty expectations and investors were disappointed with the forward guidance provided for the current quarter."
For the current quarter, AMD executives forecast revenue of $5.4 billion, plus or minus $300 million, compared with analysts' average estimate of $5.73 billion, according to LSEG data. The company did not issue per-share earnings guidance.
Advanced Micro Devices stock has surged roughly 140% in the past year, outpacing the benchmark PHLX Semiconductor Index by nearly 90 percentage points. Shares of the Santa Clara, California-based company fell about 6% in extended trading after the results....
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