AMD stock drops 6.6% to $482.53 after revenue forecast
AMD's stock took a 6.6% dive on Wednesday, was last down 6.6% at $482.53 and wiping out nearly $59 billion in market value.
The drop came after AMD's latest revenue forecast didn't quite live up to investors' big expectations in the middle of the ongoing AI boom.
To make things tougher, Elon Musk's decision to build the company's computing infrastructure exclusively with rival NVIDIA's chips left AMD out.
AMD chip supply issues until 2027
Even though AMD predicts third-quarter revenue of about $13 billion, just above what analysts guessed, investors are still wary after this year's earlier stock surge.
The company is also dealing with chip supply issues that could last until 2027.
Still, CEO Lisa Su is keeping her hopes up, saying data center revenue should more than double by 2027, with growth over 35% as AMD keeps challenging NVIDIA in the AI race.