AMD Stock Slips After In-Line Q4: Lisa Su Touts 'Exciting Time' For Chipmaker Driven By AI
Portfolio Pulse from Shanthi Rexaline
AMD reported Q4 results in line with expectations, with strong Data Center revenue offsetting weaknesses in Embedded and Gaming. The company guided Q1 revenue above consensus, but the stock fell in after-hours trading. CEO Lisa Su highlighted the impact of AI on the market and the company's strong performance in high-performance data center products. AMD's Data Center segment saw significant growth, while the Client segment was affected by a weak PC market. AMD's outlook for Q1 includes flat Data Center revenue and declines in other segments. Analysts expect continued growth in AI revenue, with a projected $4 billion run-rate by the end of 2024. Raymond James downgraded AMD from Strong Buy to Outperform due to high AI revenue expectations. After the earnings call, AMD's stock price decreased, contrasting with the overall positive performance in January and the previous year.

January 30, 2024 | 9:41 pm
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AMD's Q4 earnings were in line with expectations, driven by strong Data Center sales. The company's Q1 guidance is above consensus, but the stock fell after the report. AI and high-performance products are growth areas, but there's pressure from a weak PC market.
Despite meeting Q4 expectations and providing strong Q1 guidance, AMD's stock fell, likely due to market reactions to in-line results and possibly high expectations set by the company's recent performance. The downgrade by Raymond James may also contribute to negative sentiment.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Intel's Q4 results, which led to a 12% drop in its shares, are mentioned as a contrast to AMD's performance. The comparison may affect investor sentiment towards Intel.
Intel is mentioned in comparison to AMD's performance. While the article does not provide new information about Intel, the contrast with AMD's results could influence investor perception and sentiment.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
The iShares Semiconductor ETF, which includes AMD, is up year-to-date, reflecting the semiconductor industry's performance. AMD's results could influence the ETF's movement.
SOXX is mentioned as a broader measure of the semiconductor industry's performance. AMD's results could have a marginal impact on SOXX, but the ETF is influenced by a wide array of semiconductor stocks.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 30