![]() A more interesting complaint, though, pertains to AMD’s ambitions in the AI chip market. Hopefully, that issue will be resolved in the coming quarters. Regarding this disappointing result, AMD cited “lower 3rd Gen EPYC processor sales as Enterprise demand was soft and Cloud inventory levels were elevated at some customers.” In particular, AMD’s Data Center segment revenue declined 11% year over year to $1.3 billion. There was a notable hiccup in AMD’s quarterly results, I’ll admit. Given AMD’s earnings beat, what could anyone possibly complain about? And, why would financial traders sell AMD stock after the release of the quarterly results? Notable Complaints About AMD ![]() “Our AI engagements increased by more than seven times in the quarter,” Su boasted.Īll of this raises a couple of questions. ![]() Personally, I expect the stock to go higher than $136 - but more on that topic in a moment.Īs you might expect, CEO Lisa Su emphasized AMD’s progress as a prime AI chip developer. Also, AMD’s quarterly revenue of $5.36 billion surpassed Wall Street’s call for $5.32 billion.Īnalysts with Citigroup called the results “good” and upgraded AMD stock from “neutral” to “buy,” while raising its price target on the shares from $120 to $136. Specifically, AMD reported earnings per share ( EPS) of 58 cents, beating the analyst consensus estimate of 57 cents. That surprised me, especially since AMD exceeded Wall Street’s sales and profit forecasts. Much to the shareholders’ chagrin, AMD stock fell after the company announced its second-quarter 2023 results. Is it possible for AMD to be too ambitious with its artificial intelligence ( AI) chip targets? Some analysts might complain that AMD is aiming too high, but I believe that this chip champ can continue to beat the Street and produce game-changing, AI-enabled processors. The chipmaker’s quarterly results should convince clear-minded shareholders to stay invested. Don’t lose faith in AMD stock yet, though. It doesn’t guarantee any outcomes in the future, but it gives you a solid basis for having a more functional relationship.In August 2023, Advanced Micro Devices (NASDAQ: AMD), commonly known as just AMD, might seem like a former market darling that has lost its mojo. Heath says Raimondo "is extremely well regarded by the White House" and "is treated as a serious player by the people she is talking to in Beijing, you know, that’s exactly the right person that you want there having these discussions. exports to China are still basically at record levels and that also includes for some forms of chips” and the “broad environment is still reasonable encouraging,” Heath notes. ![]() “The more transparency, the more dialogue, the better for you as a chipmaker,” Heath explains. Investors and chipmakers should be “mildly encouraged” about communication between the United States and China, Heath says. Axios Global Tech Correspondent Ryan Heath joins Yahoo Finance Live to discuss what this means for chipmakers and for the future of U.S. Commerce Secretary Gina Raimondo visited China this week in a bid to ease some of the tensions between the United States and China. Yahoo Finance Video Chip stocks: Why Secretary Raimondo’s China visit matters ![]()
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