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.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
