Lates News

Due to revenue outlook falling short of some investors' expectations, AMD (AMD.O) saw a nearly 9% decline in after-hours trading. It is not uncommon for AMD's stock price to drop even after announcing positive results. In recent years, even when the company has exceeded Wall Street's expectations, the market reaction to its earnings reports has often been negative. AMD expects third-quarter revenue to be around $13 billion, with a fluctuation of $300 million. Although analysts' average expectation is $12.5 billion, some Wall Street forecasts, according to data compiled by Bloomberg, are much higher than $13 billion. The market reaction indicates that the company needs to demonstrate faster growth to support its valuation. The chipmaker's stock price has more than doubled this yearoutpacing the broader marketbecause AMD has become a major challenger to Nvidia in the AI processor field. In a conference call, CEO Lisa Su told analysts that the company expects its data center revenue to "more than" double by 2027. She also mentioned that, in the long term, the company is expected to surpass its previous targets of 35% annual revenue growth and $20 earnings per share.