Stocks and Investing
Stocks and Investing
Why Advanced Micro Devices Fell 18.1% in 2024
- Shares of Advanced Micro Devices (NASDAQ: AMD) fell 18.1% in 2024, according to data from S&P Global Market Intelligence. It may seem odd that AMD fell so much in 2024 given the outperformance of some of its AI-oriented semiconductor peers.
Advanced Micro Devices (AMD) experienced an 18.1% decline in its stock value in 2024 due to several factors. Initially, AMD's stock surged by 128% in 2023, driven by optimism around its AI chip prospects. However, the company faced challenges in 2024, including a significant drop in its data center revenue, which fell by 19% year over year in the fourth quarter, despite a 10% increase in overall revenue. This was largely due to a slowdown in the enterprise and China markets. Additionally, AMD's guidance for the first quarter of 2024 was below Wall Street's expectations, with projected revenue of $5.4 billion, significantly lower than the $6.1 billion anticipated by analysts. The company also forecasted a year-over-year decline in data center revenue for the first quarter, further dampening investor confidence. Moreover, AMD's stock was impacted by broader market concerns about the sustainability of AI-driven growth and competition from Nvidia, which continued to outperform expectations in the AI sector.
Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/savingandinvesting/why-advanced-micro-devices-fell-18-1-in-2024/ar-BB1rr7hl ]
Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/savingandinvesting/why-advanced-micro-devices-fell-18-1-in-2024/ar-BB1rr7hl ]
Contributing Sources
Similar Stocks and Investing Articles
[ 11:42 AM ] - Insider Monkey
[ 10:41 AM ] - MSN
[ 11:01 PM ] - The Motley Fool
[ 10:02 PM ] - Thomas Matters