AMD tumbles after giving disappointing outlook for AI growth
Published On Feb 4, 2025, 6:04 PM
AMD's stock fell sharply after the company announced a disappointing outlook for its data center business, particularly in the competitive AI sector. Although AMD's fourth-quarter revenues exceeded estimates, the company projected only double-digit growth in this sector, significantly below Nvidia's impressive sales performance. Concerns have been heightened by a new competitor from China that offers AI solutions at a lower cost. Overall, while AMD sees potential for growth in its product offerings, the immediate outlook raises doubts for investors.
Stock Forecasts
AMD
Negative
AMD is struggling to compete in the AI segment against Nvidia, which has been outperforming in sales growth. Given the recent disappointing results and projected figures, a cautious approach is advised.
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