Shares of Advanced Micro Devices (AMD) are down about 10% after the chipmaker delivered forward guidance that fell short of Wall Street’s expectations.
The company reported earnings per share (EPS) of $1.53 U.S., which was ahead of the $1.32 U.S. consensus expectation of analysts.
Revenue in the period totaled $10.27 billion U.S., which topped the $9.67 billion U.S. forecast on Wall Street.
As for its guidance, AMD said that it expects $9.80 billion U.S. in sales for the current first quarter of 2026, plus or minus $300 million U.S.
The outlook actually surpassed expectations that called for Q1 2026 revenue of $9.38 billion U.S.
However, some analysts who cover the company predicted that AMD would provide stronger guidance for the first quarter amid the ongoing artificial intelligence (A.I.) boom.
AMD, alongside Nvidia (NVDA), is one of the key makers of AI microchips and semiconductors, and its stock has risen more than 100% in the past year on the back of rising product demand.
Analysts say that with AMD’s stock performing so strongly, there was little room for any disappointment with the company’s financial results or guidance.
In recent months, AMD has announced several big new customers, including ChatGPT maker OpenAI and Oracle (ORCL).
Oracle announced in October plans to deploy 50,000 of AMD’s AI chips starting this year.
Management said on their earnings call that they plan to ship a new integrated server-scale AI system called “Helios” later this year.
Prior to today (Feb. 4), AMD’s stock had increased 103% over the last 12 months to trade at $242.11 U.S. per share.
Tech Insider
