AMD Stock Drops Nearly 8% on Guidance Letdown, but It Raises 2024 Artificial Intelligence (AI) Chip Sales Outlook

Shares of Advanced Micro Devices (NASDAQ: AMD) declined 7.6% in Tuesday's after-hours trading, following the chipmaker's release of its third-quarter 2024 report.The stock's drop is largely attributable to fourth-quarter revenue guidance coming in slightly lower than Wall Street had expected.As to third-quarter results, revenue was a little better than the analyst consensus estimate while adjusted earnings were essentially in line with the estimate.On the positive side, management increased its forecast for 2024 data center artificial intelligence (AI)-enabling graphics processing unit (GPU) chip revenue. It now expects this metric to exceed $5 billion, up from its greater than $4.5 billion outlook in July, CEO Lisa Su said on the earnings call. Management has been regularly hiking this forecast, which was $4 billion in April and $2 billion at the start of the year.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool