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AMD Tumbles After Muted Outlook, Extending Selloff Despite Strong Quarter

Investors reacted to cautious revenue targets following a year of sharp gains in AI-fueled optimism.

Overview

  • AMD projected first-quarter revenue of $9.5 billion to $10.1 billion, a range many viewed as too conservative versus expectations.
  • The stock sank 17% after the report and has fallen roughly 26% over the past month from late-January highs.
  • Fourth-quarter revenue rose 34% to $10.3 billion as adjusted earnings hit $1.53 per share, topping Wall Street estimates.
  • Data center sales grew 39% to $5.4 billion on EPYC CPUs and Instinct GPUs, while client and gaming revenue climbed 37% to $3.9 billion on Ryzen and Radeon strength.
  • Some analysts warn the valuation leaves room for more downside, with one Trefis analysis outlining a potential path near $132.