Lisa Soo, President and CEO of Advanced Micro Devices Inc. , During the AMD Advanced AI event in San Jose, California, on December 6, 2023.
David Paul Morris Bloomberg Gety pictures
Advanced small devices The shares fell 7 % on Wednesday after the chips maker was handed over to Wall Street's estimates for their important work in the data center.
The shares were traded at their lowest level in 52 weeks and was on their way to the worst session since October.
Amd mentioned Better results than expected in the upper and lower linesBut it also reported the sales of the Data Center of $ 3.86 billion. The opposite of 69 % growth over last year, but less than $ 4.14 billion in sales expected by analysts by LSEG.
The main unit, responsible for selling advanced chips for data centers, has benefited in recent years of increasing demand for their graphics processing units, as huge technology companies are racing to develop advanced artificial intelligence tools.
Data Center revenues grew by 94 % for the whole year to $ 12.6 billion, with $ 5 billion in sales caused by instinct processing units that focus on AMD. The company is the second largest gaming producer yet NafidiaThe market pioneer triumphed in artificial intelligence chips and accumulated with a value of approximately $ 3 trillion.
“We believe this places AMD on a long -term long -term growth path, led by the rapid scaling of our AI's data center from more than $ 5 billion of revenues in 2024 to tens of billions of annual revenues over the coming years,” said Lisa Soo AMD CEO of profit calls with analysts.
Many Wall Street companies The goals of their price were reduced On stocks amid the results of the disappointing data center and the expectations of the first half. Citi has reduced the shares classification to a neutral from the purchase classification, while JPMorgan aims to $ 130 from $ 180. Vivek Arya from Bank of America said that the company has not yet crossed how an important position can be sculpted “for NVIDIA.
Morgan Stanley highlighted the expectations of artificial intelligence as the most important pressure point, saying that “the vision most likely needs to improve in order for the arrows to find his foot.”
