AMD stock price plunges 17% in a single day, AI high expectations become a "stock price killer"

IT Home February 5 News, chip giant AMD’s stock price plummeted 17% on Wednesday. CNBC believes the reason for the stock decline is that AMD’s Q1 earnings guidance failed to meet the extremely aggressive expectations of some analysts.

On Tuesday, AMD released its Q4 financial report, showing revenue of $10.27 billion (IT Home note: approximately 71.378 billion RMB at current exchange rates), significantly higher than the $9.67 billion expected by the London Stock Exchange Group (LSEG).

AMD expects first-quarter revenue to reach $9.8 billion (plus or minus $300 million), a figure that actually exceeds the market expectation of $9.38 billion. However, some analysts previously predicted that, given the explosive growth in AI chip demand, AMD should provide a more robust earnings outlook.

As a core manufacturer of AI chips alongside Nvidia, AMD’s stock price has surged over 100% in the past year due to high demand. This rapid growth has made investors extremely sensitive to any small deviations from expectations.

The three major stock indices showed divergence on February 4. The Dow Jones Industrial Average rose 0.5% against the trend, while the Nasdaq Index, dominated by tech stocks, fell 1.5% amid selling pressure in the semiconductor sector, and the S&P 500 index dipped 0.5%.