{"id":49501,"date":"2025-08-06T12:43:08","date_gmt":"2025-08-06T12:43:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/49501\/"},"modified":"2025-08-06T12:43:08","modified_gmt":"2025-08-06T12:43:08","slug":"amd-super-micro-shares-slide-as-ai-bets-falter-on-data-centre-results-miss","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/49501\/","title":{"rendered":"AMD, Super Micro shares slide as AI bets falter on data centre results miss"},"content":{"rendered":"

Shares of chip company Advanced Micro Devices (AMD-Q<\/a>) and server maker Super Micro Computer (SMCI-Q<\/a>) tumbled in premarket trading on Wednesday after the companies posted underwhelming results in their data centre segments, shaking investor confidence in their AI growth narratives.<\/p>\n

AMD dropped nearly 5 per cent, while Super Micro plummeted about 17 per cent. The selloff comes as chipmakers face mounting headwinds, including weak demand, rising inventories, and the threat of new U.S. tariffs on semiconductor imports, expected as early as next week.<\/p>\n

Analysts say that given the strength of the overall server market, Super Micro\u2019s disappointing results likely reflect market share losses to larger rivals.<\/p>\n

SMCI peer Dell (DELL-N<\/a>) was down 3.1 per cent.<\/p>\n

AMD\u2019s data centre unit, which includes its Instinct AI chips and server processors (CPUs), posted a 14-per-cent revenue rise to US$3.2-billion in the second quarter, slightly below market expectations.<\/p>\n

\u201cAI outlook did not show the sort of upside some investors were looking for,\u201d said Jefferies analysts.<\/p>\n

In contrast, Nvidia\u2019s (NVDA-Q<\/a>) data center segment jumped 73 per cent to US$39.11-billion in its fiscal first quarter.<\/p>\n

In a post-earnings conference call, AMD CEO Lisa Su said the company\u2019s AI chip revenue declined year-over-year because of the U.S. restrictions on export of its MI308 chips to China.<\/p>\n

The company noted progress on export license reviews for the chips, but gave no clear timeline for lifting the restrictions.<\/p>\n

\u201cPotential addback of MI308 revenues from lifting of export restrictions also appears to be more muted than market expectations,\u201d HSBC added.<\/p>\n

Super Micro missed fourth-quarter estimates as it competes with larger rivals in AI server hardware, with execution missteps and Nvidia chip delays weighing on its performance.<\/p>\n

Analysts say any weakness in the high-expectation AI space tends to spark sharp investor backlash.<\/p>\n

\u201cWe expect better chip availability this fiscal year compared to the last two quarters, which will help us grow better,\u201d Super Micro CEO Charles Liang said on the post-earnings call.<\/p>\n

J.P.Morgan analysts noted that AI remains the \u201cpreeminent driver of sales growth,\u201d with over 70 per cent of fourth-quarter revenue tied to AI platforms. They added that Super Micro\u2019s rapid integration of next-gen technologies could support margin recovery once supply stabilizes.<\/p>\n

AMD commands a higher forward price-to-earnings multiple of 32.39, compared to SMCI that trades at a more modest 19.69.\u00a0<\/p>\n

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter.\u00a0Sign up today<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Shares of chip company Advanced Micro Devices (AMD-Q) and server maker Super Micro Computer (SMCI-Q) tumbled in premarket…\n","protected":false},"author":2,"featured_media":49502,"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-49501","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\/49501","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=49501"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/49501\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/49502"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=49501"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=49501"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=49501"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}