Benzinga - by Shanthi Rexaline, Benzinga Editor.
Despite exceeding analyst estimates slightly for its first-quarter results, Advanced Micro Devices, Inc. (NASDAQ:AMD) saw its share price pull back sharply in premarket trading on Wednesday.
While AMD’s year-over-year revenue and earnings increased, they fell short of the previous quarter. Strong performance in the Data Center segment, driven by record sales of MI300 AI accelerators and EPYC server processors, and a surprising boost in Client processors couldn’t offset weakness in the Gaming and Embedded segments.
The company’s second-quarter revenue forecast could fall below estimates if it reaches the lower end of its guidance range. However, CEO Lisa Su did offer a positive outlook by raising the 2024 forecast for MI300 sales to $4 billion during the earnings call.
The chipmaker’s stock price dropped 6.34% to $148.34 in premarket trading. This negative sentiment rippled through the sector, causing shares of AI server manufacturer Super Micro Computer, Inc. (NASDAQ:SMCI) to tumble 12.28% premarket, according to Benzinga Pro data. Nvidia dipped 2.20% to $846.60 premarket, with investors likely setting the bar high for their upcoming May 22 earnings report.
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