Shares of Advanced Micro Devices (AMD) fell 7% on Wednesday after the chipmaker missed Wall Street’s expectations for its crucial data center business. The stock hit a 52-week low and was on track for its worst trading day since October.
Although AMD reported better-than-expected earnings on both the revenue and profit fronts, its data center sales of $3.86 billion reflected a year-over-year growth of 69%. However, this figure fell short of analysts’ expectations, which had anticipated $4.14 billion in sales.
The data center segment, which is pivotal for AMD as it sells advanced chips to meet the growing demand for graphics processing units, has been boosted in recent years by the increasing interest in developing advanced artificial intelligence tools among major technology companies.
Source (CNBC)
