Wednesday saw a 6.3% decline in Advanced Micro Devices (AMD) shares after the company failed to meet Wall Street’s expectations for its core data centre sector.
The closing price of the shares was $112.01, the lowest since November 2023. Despite reporting data centre revenues of $3.86 billion, AMD’s overall earnings were stronger than anticipated.
Even though this amount is 69% higher than the previous year, it fell short of the $4.14 billion that LSEG analysts had predicted.
Since the demand for AMD’s graphics processing units (GPUs) has increased, this important area of the company’s business—which focusses on providing cutting-edge chips for data centers—has experienced tremendous development.
This need is being driven by large tech corporations’ growing investments in cutting-edge artificial intelligence systems.
Source (CNBC)
