AMD Shares Rebound 7.7% After 20% Post-Earnings Plunge Following $9.8 B Q1 Sales Forecast
AMD reported fourth-quarter revenue growth of 34% and a 40% year-over-year EPS increase, yet its stock initially plunged over 20% on guidance signaling Q1 sales of about $9.8 billion. The shares then rebounded 7.7% as investors viewed the correction as a buying opportunity.
1. Q4 Results and Initial Sell-Off
AMD delivered a strong fourth quarter with revenue up 34% year-over-year and earnings per share rising 40%, both exceeding analyst estimates. Despite robust metrics, investors reacted to concerns over future growth by selling off more than 20% of the stock shortly after the earnings release.
2. Q1 Guidance and Subsequent Recovery
Management forecast first-quarter sales of approximately $9.8 billion, below elevated market expectations for continued record growth in its AI and data-center segments. After the sharp decline, the shares bounced back 7.7% as some investors saw the pullback as an attractive entry point given AMD’s long-term positioning in the chip market.