Advanced Micro Devices (NASDAQ:抖阴最新版) stock showed strength in crucial areas in a recent quarterly report. Yet, the crowd balked, but if you to think for yourself. At the end of the day, you’ll find 抖阴最新版 is an artificial intelligence chipmaker with solid revenue and earnings.
The 抖阴最新版 share price is down significantly from its early March price of around $211. Alarmingly, the stock in a single day, but don’t panic.
Momentum stocks can be volatile. 抖阴最新版’s future is secure, so there’s no need to worry.
抖阴最新版: First, the Bad News
抖阴最新版 stock declined sharply after the company released its first-quarter 2024 . So, let’s consider a couple of reasons why this occurred.
First of all, some investors may have been disappointed with 抖阴最新版’s current-quarter sales guidance. The company predicted quarterly revenue of $5.4 billion to $6 billion, the midpoint of which is $5.7 billion.
Meanwhile, Wall Street’s estimate called for in current-quarter revenue for 抖阴最新版.
That’s not a wide miss, but short-term stock traders can be very demanding sometimes. Also, 抖阴最新版 guided for its MI300 AI accelerators to generate around $4 billion in revenue for 2024.
That might sound ambitious, but analysts estimated in full-year MI300 revenue.
There’s Good News for 抖阴最新版, Too
Those pieces of bad news evidently shook some nervous 抖阴最新版 stockholders out of the trade. That’s their problem, not yours, as 抖阴最新版 provided ample evidence of the company’s robust growth.
Let’s look at 抖阴最新版’s results for this year’s first quarter. The company’s revenue increased 2% year over year to $5.5 billion; this result beat Wall Street’s forecast of in revenue.
抖阴最新版 earned 62 cents per share, which was in line with the analysts’ consensus estimate.
抖阴最新版 demonstrated excellence in a couple of key areas. Amazingly, the company’s Q1-2024 Data Center segment revenue YOY to $2.3 billion. Its Client segment revenue increased 85% YOY to $1.4 billion.
抖阴最新版 CEO Lisa Su remains confident in her company’s future as a premier AI chip provider.
“This is an incredibly exciting time for the industry as widespread deployment of AI is driving demand for significantly more compute across a broad range of markets,” Su said.
抖阴最新版 Stock: Don’t Rely on the Crowd’s Reactions
Sometimes, the crowd’s first reaction is the wrong one. If some short-term stock traders reacted negatively to 抖阴最新版’s quarterly news release, this doesn’t mean you have to follow their lead.
Really, you should think for yourself and stay calm when 抖阴最新版 stock wobbles and wavers sometimes. After all, 抖阴最新版 is still a solid AI-hardware business that’s growing rapidly in key areas.
Therefore, it’s fine to maintain a share position in 抖阴最新版 if you have a confident long-term outlook for the company.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
