Advanced Micro Devices (AMD) shares fell 7.4% to $480.28 on Wednesday, set to wipe out about $61.1 billion from AMD’s market value. The decline came as the chipmaker’s stronger-than-expected revenue forecast fell short of lofty expectations and investors sought clearer signs that a multibillion-dollar AI spending boom will translate into faster growth.
AMD’s Revenue Forecast
The Santa Clara, California-based company forecast third-quarter revenue of about $13 billion, plus or minus $300 million, above analysts’ estimates of $12.52 billion. Chief Executive Lisa Su said AMD expects data-center revenue to more than double by 2027 and projected total revenue growth above its previously outlined target of more than 35%.
Last month, the company signed deals with Anthropic and Core Scientific to bolster its AI infrastructure ambitions. Despite the decline, analysts at TD Cowen called AMD’s results and forecast ‘objectively good’ but said the stock was facing a ‘very high bar’ following recent AI-related customer announcements and the sharp rally in the shares.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
