AMD Stock Dips Despite Earnings Beat Amid Broader AI Sector Concerns
Advanced Micro Devices Inc. shares fell 5% in premarket trading Wednesday despite surpassing third-quarter earnings expectations. The chipmaker reported adjusted earnings of $1.20 per share on revenue of $9.25 billion, exceeding analyst projections of $1.16 and $8.74 billion respectively.
Year-over-year revenue grew 36% while net income jumped to $1.24 billion from $771 million. Fourth-quarter guidance of $9.6 billion also topped Wall Street estimates, suggesting 25% growth. The decline comes as UBS simultaneously raised AMD's price target to $300 from $265 ahead of the company's analyst day.
Market sentiment appears weighed down by broader concerns about AI spending sustainability, triggering pullbacks across AI-related stocks despite strong fundamentals. The reaction highlights investor caution toward tech valuations even when companies deliver on earnings.
