AMD stock dropped 10.9% after fourth-quarter report, concerns over downturn in AI product sales

From Nasdaq: 2025-02-05 15:59:55

Shares of Advanced Micro Devices (NASDAQ: AMD) dropped 10.9% following the chip designer’s fourth-quarter report. Despite exceeding analyst expectations, CEO Lisa Su’s comments on a downturn in AI product sales caused concern. Data center sales now make up over half of AMD’s revenue, with AI chips contributing significantly to 2024 revenues.

While AMD’s stock took a hit, the recent report does not signal the end of the road for its AI ambitions. The new Instinct MI300X accelerator is powering AI products for Meta Platforms and Microsoft, with significant revenue potential. Analysts suggest that this may be a temporary setback in AMD’s overall growth trajectory.

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Read more at Nasdaq: Is AMD in Trouble After Wednesday’s Stock Drop?