AMD shares drop 10% on disappointing data center revenue
Summary
Advanced Micro Devices shares fell more than 10% on Wednesday after the chipmaker under-delivered on Wall Streets estimates for its important data center business. Shares traded at a 52-week low and were on pace for their worst session since October. That reflected 69% growth from a year ago but fell short of the $4.14 billion in sales expected by analysts polled by LSEG. The key unit, responsible for selling advanced chips for data centers, has benefitted in recent years from growing demand for its graphics processing units, as megacap technology companies race to develop advanced artificial intelligence tools. "We believe this places AMD on a steep long-term growth trajectory, led by the rapid scaling of our data center AI franchise from more than $5 billion of revenue in 2024 to tens of billions of dollars of annual revenue over the coming years," AMD CEO Lisa Su said on the earnings call with analysts.
Classifications
AskAI Classifications
LabelsLinked Companies
