AMD's Current Outlook Disappoints as AI Returns Fall Short of Some Investor Expectations

Deep News02-04 05:46

As a primary challenger to Nvidia in the artificial intelligence (AI) processor market, Advanced Micro Devices' current outlook proved disappointing, indicating its progress in the AI sector has not met the prior expectations of some investors.

The company stated in a declaration on Tuesday that first-quarter sales are projected to be approximately $9.8 billion. Data reveals that the average analyst estimate was $9.39 billion, although some forecasts had exceeded $10 billion.

This outlook disappointed investors who had hoped for a more substantial return from AI computing expenditures. AMD continues to trail Nvidia in this lucrative market; however, the chipmaker has indicated that a more powerful new design, slated for release in the second half of this year, is expected to provide a competitive edge.

Following the earnings release, AMD's stock declined over 5% in after-hours trading. As of Tuesday's market close, the stock had accumulated a 13% gain year-to-date.

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