AMD forecasts upbeat revenue on strong AI chip demand, but shares fall on lofty expectations
AMD forecast quarterly revenue above Wall Street estimates on Tuesday, banking on strong demand for its chips from massive data-center capacity expansions to power AI technologies.
Yet, its shares fell more than 7% in extended trading, suggesting that investors were looking for an even stronger outlook after the stock more than doubled this year spurred on by AI optimism.
“AMD is now in a similar position to Nvidia and the hyperscalers, where investors are looking for evidence that AI infrastructure investments will continue translating into accelerating returns,” said Jacob Bourne, an analyst at Emarketer.
