{"id":453336,"date":"2026-02-04T13:20:09","date_gmt":"2026-02-04T13:20:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/453336\/"},"modified":"2026-02-04T13:20:09","modified_gmt":"2026-02-04T13:20:09","slug":"amd-falls-as-dour-forecast-shows-cracks-in-ai-trade","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/453336\/","title":{"rendered":"AMD falls as dour forecast shows cracks in AI trade"},"content":{"rendered":"\n

Feb 4 (Reuters) – Advanced Micro Devices shares fell nearly 7% in premarket trading on Wednesday after the chipmaker’s lackluster quarterly sales forecast rekindled investor doubts over its ability \u200bto take on AI chip bellwether Nvidia<\/a>.<\/p>\n

The chipmaker’s retreat comes alongside a broader selloff \u200cin global software stocks tied to fears that AI will replace software and related tools, following an updated chatbot release from \u200cAI developer Anthropic.<\/p>\n

For hardware makers such as Nvidia and AMD, the risk remains that AI tools<\/a> have shown limited real-world productivity gains and investor patience with Big Tech’s mounting AI spending is waning.<\/p>\n

Nvidia fell 0.6% and Broadcom slid 1.24%. The iShares semiconductor ETF dipped 0.5% in premarket trading.<\/p>\n

Although AMD’s shares doubled in \u20602025, outpacing the chip index, analysts \u200ccautioned its AI gains hinge on a narrow customer base as Nvidia aggressively courts rivals’ partners, including a reported $20 billion push tied to chip startup Groq.<\/p>\n

AMD forecast \u200dfirst\u2011quarter revenue of about $9.8 billion, plus or minus $300 million, slightly ahead of analysts’ estimates at $9.67 billion. But the forecast was still lower than $10.27 billion in the fourth quarter.<\/p>\n

The disappointing outlook comes despite a late boost from China-bound \u200bAI chip sales approved under a U.S. license that generated $390 million. Without those sales, AMD’s \u200cdata center segment would have missed estimates in the fourth quarter.<\/p>\n

“In such an intense environment, overall results weren’t all that much beyond ‘inline’ without the China boost,” Bernstein analyst Stacy Rasgon said, adding that near\u2011term AI numbers “are not really inflecting.”<\/p>\n

CEO Lisa Su said demand for AMD’s next\u2011generation AI servers, including shipments to OpenAI<\/a> and other customers, is set to accelerate sharply in the second half of the year, \u2060adding that a global memory\u2011chip shortage would not constrain \u200bproduction.<\/p>\n

Investors’ reaction to AMD’s performance was in stark contrast to \u200ba more than 10% jump in shares of Super Micro Computer, after the company raised its annual revenue outlook, pointing to continued strength in demand for AI\u2011optimised \u200dservers.<\/p>\n

The upbeat outlook from Super \u2060Micro, a key partner to chip designers including Nvidia and AMD, highlights continued strength in downstream AI infrastructure spending, even as investors question the pace at which chipmakers can convert \u2060demand into near\u2011term earnings growth.<\/p>\n

AMD commands a higher forward price-to-earnings multiple of 33.16, compared to SMCI that trades at a \u200cmore modest 10.81.<\/p>\n

(Reporting by Rashika Singh in Bengaluru; Additional reporting by Danilo Masoni in \u200cLondon; Editing by Amanda Cooper and Saumyadeb Chakrabarty)<\/p>\n","protected":false},"excerpt":{"rendered":"Feb 4 (Reuters) – Advanced Micro Devices shares fell nearly 7% in premarket trading on Wednesday after the…\n","protected":false},"author":2,"featured_media":453337,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[33153,45,49,48,6494,27200,186318],"class_list":["post-453336","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-advanced-micro-devices","tag-business","tag-ca","tag-canada","tag-nvidia","tag-premarket-trading","tag-quarterly-sales"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/453336","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=453336"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/453336\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/453337"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=453336"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=453336"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=453336"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}