Reported 27 days ago
AMD's stock plummeted 11% after the company announced lower-than-expected revenue forecasts, indicating slower growth in AI chip sales. Despite projecting over $5 billion in AI accelerator sales for the year, investors were hoping for a stronger performance compared to rivals like Nvidia. CEO Lisa Su reassured that AMD is increasing production and gaining customer trust, but supply constraints limit their growth potential. The company's third-quarter revenue rose 18% to $6.82 billion, yet concerns linger about the profitability of AI services and overall demand for their products.
Source: YAHOO