{"id":453465,"date":"2026-02-04T14:45:10","date_gmt":"2026-02-04T14:45:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/453465\/"},"modified":"2026-02-04T14:45:10","modified_gmt":"2026-02-04T14:45:10","slug":"amd-falls-as-dour-forecast-shows-cracks-in-ai-trade-2","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/453465\/","title":{"rendered":"AMD falls as dour forecast shows cracks in AI trade"},"content":{"rendered":"

Advanced Micro Devices (AMD-Q<\/a>) shares fell nearly 7 per cent in premarket trading on \u200bWednesday after the chipmaker\u2019s lackluster quarterly sales \u200dforecast rekindled investor doubts over its ability to take on AI chip bellwether Nvidia.<\/p>\n

The chipmaker\u2019s retreat comes alongside a broader selloff in global software stocks tied to fears \u200dthat \u200bAI will replace software and related tools, following an updated chatbot release from AI developer Anthropic.<\/p>\n

For hardware makers such as Nvidia and AMD, the risk remains that AI tools have shown limited real-world productivity gains and investor patience with Big Tech\u2019s mounting AI spending \u2060is waning.<\/p>\n

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

Although AMD\u2019s shares doubled in 2025, outpacing the chip index, analysts cautioned its AI gains hinge on a narrow customer base as Nvidia aggressively courts rivals\u2019 partners, including \u200ca reported $20 billion push tied \u200dto chip startup Groq.<\/p>\n

AMD forecast first-quarter revenue of about $9.8 billion, plus or minus $300 \u200dmillion, slightly ahead of analysts\u2019 estimates at $9.67 billion. \u200cBut the forecast was still lower than $10.27 billion in the fourth \u2060quarter.<\/p>\n

The disappointing outlook comes despite a late boost from China-bound AI chip sales approved \u200bunder a U.S. license that generated $390 million. Without those sales, AMD\u2019s data center segment would have missed estimates in the fourth quarter.<\/p>\n

\u201cIn such an intense environment, overall results weren\u2019t all that much beyond \u2018inline\u2019 without the China boost,\u201d Bernstein analyst Stacy Rasgon said, adding that \u200bnear-term AI numbers \u201care not really inflecting.\u201d<\/p>\n

CEO Lisa Su said demand for AMD\u2019s next-generation AI servers, including shipments to OpenAI and other customers, is set to accelerate sharply in the second half of the year, adding that a global memory-chip shortage would not constrain production.<\/p>\n

Investors\u2019 reaction to AMD\u2019s performance was in stark contrast to a more than 10 per cent jump \u2060in shares of Super Micro Computer, after the company raised its annual \u2060revenue outlook, pointing to continued strength in demand for AI-optimised servers.<\/p>\n

The upbeat outlook from Super Micro, a key \u200cpartner 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 demand into near-term earnings growth.<\/p>\n

AMD commands a higher forward price-to-earnings multiple of 33.16, compared to SMCI that trades at a more \u200cmodest 10.81.<\/p>\n","protected":false},"excerpt":{"rendered":"Advanced Micro Devices (AMD-Q) shares fell nearly 7 per cent in premarket trading on \u200bWednesday after the chipmaker\u2019s…\n","protected":false},"author":2,"featured_media":453466,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[62,901,276,277,888,902,879,877,903,49,48,876,895,896,891,878,875,46,549,295,894,887,914,880,881,893,889,890,884,904,885,909,910,912,907,911,905,908,882,898,899,714,897,906,865,61,900,892,886,883,913],"class_list":["post-453465","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-alberta","tag-artificial-intelligence","tag-artificialintelligence","tag-arts-news","tag-bc","tag-breaking-news","tag-breaking-news-video","tag-british-columbia","tag-ca","tag-canada","tag-canada-news","tag-canada-sports","tag-canada-sports-news","tag-canada-trafficcanada-weather","tag-canadian-breaking-news","tag-canadian-news","tag-economy","tag-education","tag-environment","tag-federal-government","tag-foreign-news","tag-globe-and-mail","tag-globe-and-mail-breaking-news","tag-globe-and-mail-canada-news","tag-government","tag-life-news","tag-lifestyle","tag-local-news","tag-manitoba","tag-national-news","tag-new-brunswick","tag-newfoundland-and-labrador","tag-northwest-territories","tag-nova-scotia","tag-nunavut","tag-ontario","tag-pei","tag-photos","tag-political-news","tag-political-opinion","tag-politics","tag-politics-news","tag-quebec","tag-sports-news","tag-technology","tag-travel","tag-trudeau","tag-us-news","tag-world-news","tag-yukon"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/453465","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=453465"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/453465\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/453466"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=453465"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=453465"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=453465"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}