Why did Advanced Micro Devices stock drop 17%?

Advanced Micro Devices stock dropped 17% because its earnings report fell short of Wall Street's high expectations, despite beating revenue forecasts.

What drove Advanced Micro Devices' fourth-quarter revenue?

Advanced Micro Devices' fourth-quarter revenue was driven by booming data-center business and unexpected chip sales in China.

What concerns are affecting AMD and other AI chip stocks?

Concerns about rising expenses, weak first-quarter guidance, and the overall durability of the AI arms race are affecting AMD and other AI chip stocks.

Home / Business and Economy / AMD Stock Plummets 17% on Disappointing Earnings

AMD Stock Plummets 17% on Disappointing Earnings

5 Feb

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Summary

Advanced Micro Devices shares fell 17% after earnings missed high expectations.
Fourth-quarter revenue exceeded forecasts, boosted by China sales.
Concerns over rising expenses and weak first-quarter guidance impacted stock.

AMD Stock Plummets 17% on Disappointing Earnings

Advanced Micro Devices saw its stock price tumble by 17% on Wednesday, a significant market reaction following its latest earnings report. This represented the largest single-day decrease in the chip manufacturer's stock value since 2017.

The company had previously announced fourth-quarter revenue of $10.27 billion, a figure that surpassed analyst expectations of $9.69 billion. This beat was largely attributed to strong, unexpected chip sales within China.