From Nasdaq: 2024-05-01 17:20:27

Advanced Micro Devices (NASDAQ: AMD) stock dropped 9% after releasing its first-quarter earnings report, with sales slightly beating analyst estimates. However, questions linger regarding AI’s impact on future growth. Revenue rose 2.2% YoY, primarily driven by the data center segment’s 80% growth to $2.3 billion, but slower momentum in other areas dampened overall growth.

AMD guided second-quarter sales between $5.4 billion and $6 billion, projecting a 6% YoY increase and a higher adjusted gross margin of 53%. Despite trailing Nvidia in data center GPU market share, AMD’s AI processor and Ryzen and EPYC processors are expected to drive growth. Investors are cautious about AMD’s growth potential relative to competitors.

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Read more at Nasdaq: Why AMD Stock Sank Today