AMD earnings are out and the stock is falling. Here’s what to know.
- Investing Markets
Ramit Sethi- 0
- 2 minutes read
Shares of Advanced Micro Devices are down 7.9% in after-hours trading, and to one analyst, it looks like “a classic ‘sell the news’ moment for an AI-chip stock priced for perfection.”
Investors wanted proof that AMD’s next growth drivers are “arriving faster and cleaner than already assumed,” David Wagner, a portfolio manager at Aptus Capital Advisors, said. He was referring to the rollout of its Helios chip rack and AMD’s ability to expand its share of the AI chip market.
So far, AMD’s report has underwhelmed bullish hopes on those points, Wagner said in emailed comments, though the underlying business continues to accelerate. He added that investors are likely not satisfied with AMD setting its gross margin guidance at 56%, flat with the second-quarter level.
