AMD Stock Faces Post-Earnings Slump Despite AI Growth Potential
Advanced Micro Devices (AMD) shares have declined nearly 9% since last week's earnings release, as investors expressed disappointment despite solid financial results. The dip follows a 133% six-month rally, highlighting heightened expectations for the chipmaker's AI-driven growth narrative.
Cantor's top-ranked analyst C.J. Muse characterizes AMD's guidance as 'mixed,' with revenue slightly exceeding expectations but EPS falling short. The report notes strengthening traditional server CPU demand boosted by AI applications, which management views as sustainable.
Attention now turns to AMD's November 11 Analyst Day, where the company is expected to showcase its positioning in the $3 trillion AI infrastructure market. Muse projects long-term earnings potential of $20 per share as AMD competes in high-growth AI compute segments.
