Amd nasdaq Amd Stock Falls As Q1 Revenue Forecast Misses Expectations

AMD (NASDAQ: AMD) Stock Falls as Q1 Revenue Forecast Misses Expectations

Advanced Micro Devices (NASDAQ: AMD) shares fell about 3% on Wednesday following the release of fourth-quarter results, which included revenue guidance for the upcoming quarter that fell short of Wall Street’s expectations.

AMD expects Q1 2024 revenue between $5.1 billion and $5.7 billion, with a midpoint at $5.4 billion, below Wall Street’s projected $5.73 billion.

AMD is bracing for a mixed-demand scenario throughout 2024. While the company predicts a decline in CPU sales, it remains optimistic about the growth of GPU revenue. The shift is attributed to decreased demand for CPUs in servers and an increased appetite for GPUs, particularly for training artificial intelligence (AI).

AMD Stock Downgraded

In addition, Raymond James analyst Srini Pajjuri revised AMD’s stock rating, downgrading it from Strong Buy to Outperform, contributing to its lackluster outlook. The analyst consensus rating for AMD shares remains a moderate buy, drawing from 29 opinions.

However, the analyst raised the price target for AMD stock from $190 per share to $195. This is notably higher than the average analyst consensus price estimate of $173 per share, reflecting some positive sentiment despite the overall mixed outlook for the company.

AMD (NASDAQ: AMD) Stock Movement

AMD stock declined -2.54% on Wednesday. The traders had exchanged hands with 132,520,512 (132.52 million) shares compared to the average daily trading volume of 69.35 million.