AMD falls as investors seek bigger AI payoff
AMD•Forecast and customer wins highlight AI ambitions
Santa Clara, California-based AMD forecast third-quarter revenue of about $13 billion, plus or minus $300 million, above analysts' estimates of $12.52 billion, according to data compiled by LSEG.
Analysts at TD Cowen said AMD stock was facing a "very high bar" following recent AI-related customer announcements and the sharp rally in the shares, despite "objectively good" results and forecast.
Last month, the company signed deals with Anthropic and Core Scientific CORZ.O to bolster its AI infrastructure ambitions.
AMD's stock has more than doubled this year on expectations that the company will emerge as the leading alternative to Nvidia in AI chips, raising the ante for quarterly results.
Chief Executive Lisa Su said AMD expects data-center revenue to more than double by 2027 and projected total revenue growth above its previously outlined target of more than 35%. AMD's data-center revenue more than doubled to $6.72 billion, topping expectations.
Shares fall after revenue forecast fails to impress
Aug. 5 (Reuters) - Advanced Micro Devices AMD.O shares fell premarket on Wednesday as the chipmaker's revenue forecast failed to impress investors seeking clearer signs that a multibillion-dollar AI spending boom will translate into faster growth.
SpaceX's SPCX.O decision to build its computing infrastructure exclusively on rival Nvidia NVDA.O chips dealt another blow to the stock, which was last down 8.8% at $473, set to shave more than $74 billion off its market value.
The decline underscores the elevated expectations AMD faces, and serves as a reminder that winning high-profile customers remains critical as it seeks to boost its competitive position against Nvidia and Intel .
