What’s Going On With AMD Inventory Wednesday? – Superior Micro Units (NASDAQ:AMD)

Superior Micro Units Inc AMD shares are falling Wednesday morning on the heels of the corporate’s fourth-quarter monetary outcomes. A number of analysts additionally lowered value targets following the print.

• This fall Income: $7.66 billion, versus estimates of $7.53 billion

• This fall Adjusted EPS: $1.09, versus estimates of $1.08

Whole income was up 12% year-over-year, led by Knowledge Middle income of $3.9 billion, which was up 69% year-over-year. The Knowledge Middle outcomes got here in under analyst expectations of $4.14 billion, per CNBC. The Knowledge Middle quantity seems to be the primary factor weighing on shares Wednesday as traders proceed to deal with AI progress.

Consumer phase income totaled $2.3 billion, up 58% year-over-year. Gaming income fell 59% year-over-year to $563 million and Embedded income declined 13% year-over-year to $923 million. 

“2024 was a transformative 12 months for AMD as we delivered file annual income and powerful earnings progress,” stated Lisa Su, chair and CEO of AMD. “Knowledge Middle phase annual income practically doubled as EPYC processor adoption accelerated and we delivered greater than $5 billion of AMD Intuition accelerator income.”

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Q1 Outlook: AMD anticipates first-quarter income of roughly $7.1 billion, plus or minus $300 million. The corporate’s income steering represents year-over-year progress of roughly 30% on the midpoint.

“Trying into 2025, we see clear alternatives for continued progress primarily based on the power of our product portfolio and rising demand for high-performance and adaptive computing,” Su stated.

Su famous on the convention name that the corporate anticipates “robust double-digit share income and EPS progress” this 12 months.

Following the corporate’s quarterly outcomes, Keybanc analyst John Vinh maintained AMD with an Chubby ranking and lowered the worth goal from $150 to $140. BofA Securities analyst Vivek Arya maintained a Impartial ranking and lowered the worth goal from $155 to $135. Benchmark analyst Cody Acree maintained a Purchase and lowered the worth goal from $200 to $170.

AMD Worth Motion: AMD shares had been down 9.9% at $107.67 on the time of publication Wednesday, in accordance with Benzinga Professional.

Photograph: courtesy of AMD.