AMD stops giving AI-chip revenue forecast. History says that's not a great sign.
Posted: Feb 05, 2025
- Advanced Micro Devices Inc. (AMD) did not provide specific revenue numbers or forecasts for its AI chips in recent quarters, causing concern among investors.
- AMD shares fell 9% in after-hours trading following the earnings report.
- AMD executives mentioned that the data-center business and sales of AI GPUs should grow by strong double-digit percentages in 2025, but did not provide specific guidance.
- AMD is transitioning to its next-generation AI GPUs, including the MI325 and MI350 chips.
- AMD's failure to provide guidance for AI chips may negatively impact investor expectations and the stock price.
- Apple Inc. (AAPL) also stopped giving a key earnings figure in 2018, leading to slower growth for the iPhone.
- Wall Street does not like it when companies suddenly stop providing key metrics, leading to concerns among investors.
- AMD stock is down about 26% from the previous quarter as over-exuberance about the company's AI chips caused expectations to become too frothy.
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