AMD's AI-powered revenue forecast fails to wow investors
Yet, its shares fell nearly 9% in extended trading, suggesting that investors were looking for an even stronger outlook after the stock more than doubled this year spurred on by AI optimism.
AMD's AI-powered revenue forecast failed to impress investors on Tuesday, despite the company forecasting quarterly revenue above Wall Street estimates. The increase in revenue was attributed to strong demand for its chips from massive data-center capacity expansions aimed at powering AI technologies. However, AMD's shares fell nearly 9% in extended trading, indicating that investors were seeking a more impressive outlook.
Analysts noted that the stock had more than doubled this year due to AI optimism, pushing AMD into a similar position as Nvidia and hyperscalers, where investors are looking for evidence that AI infrastructure investments will lead to accelerating returns.
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- AMD’s AI-powered revenue forecast fails to wow investors freemalaysiatoday.com
