AMD's revenue outlook disappoints investors, stock price falls about 6% in after-hours trading
AMD released its third-quarter revenue guidance of $13 billion, which is slightly higher than the average analyst expectations but lower than some high expectations from Wall Street institutions, disappointing investors. As a result, AMD's stock price fell about 6% in after-hours trading. The market believes that AMD needs to demonstrate a faster growth rate to support its current valuation, despite its stock price having risen significantly this year due to its competitive position in AI
AMD's latest sales outlook has disappointed investors, indicating that the market has higher expectations for the returns brought by the global AI data center expansion.
AMD stated in a release on Tuesday that third-quarter revenue is expected to be $13 billion, with a fluctuation of $300 million. Although analysts' average expectation was $12.5 billion, data shows that some Wall Street institutions' forecasts are much higher than $13 billion.
After the earnings report was released, AMD's stock price fell about 6% in after-hours trading. The stock closed at $518.58 in New York on Tuesday.
Market reactions indicate that AMD needs to demonstrate faster growth to support its current valuation. This year, as AMD has become a major competitor to NVIDIA in the AI processor field, its stock price has more than doubled, far exceeding the overall market performance
