AMD's stock plummets 17% on cautious AI forecast
AMD's stock took a 17% dive to $200.19—its steepest fall in nearly a decade—despite posting a solid $10.3 billion in Q4 revenue, up 34% from last year.
The real issue? Investors weren't impressed by AMD's forecast for next quarter, which felt too cautious given the current buzz around AI.
Potential AI boom slowdown
This slide signals that the AI boom might be cooling off, especially as big tech companies ramp up AI investments and pursue their own chip development.
That could make it tougher for AMD to grab a piece of the growing data center market.
Data center sales up, but revenue guidance shows slowing growth
Even though AMD's data center sales jumped 39%, its Q1 revenue guidance ($9.5-10.1 billion) suggests growth is slowing down compared to last quarter.
Amid investor and analyst disappointment, many wanted to see bolder predictions from CEO Lisa Su and her team—but didn't get them.
Trading volume spiked as investors reacted fast to the news.