Advanced Micro Devices (NASDAQ:AMD) stock is falling on Wednesday after the semiconductor company reported it latest earnings.
The bad news for AMD stock today doesn’t come from its fourth-quarter earnings, which beat estimates. Instead, it has to do with the company’s outlook for the first quarter of 2024.
AMD says it expects revenue for Q1 2024 to range from $5.1 billion to $5.7 billion with a midpoint of $5.4 billion. That’s pulling AMD stock down today as Wall Street is expecting revenue of $5.73 billion for the period.
This comes as AMD expects a mixed demand environment in 2024. The company is expecting CPU sales to decrease but believes that its GPU revenue will grow during the year. This comes amid weaker demand for its CPUs in servers and increasing demand for its GPUs to train artificial intelligence (AI).
AMD Stock Downgraded
Adding to this lackluster outlook is a downgrade for AMD stock. Raymond James analyst Srini Pajjuri dropped the stock from a “strong buy” rating to an “outperform” rating. The analyst consensus rating for AMD shares is a moderate buy based on 29 opinions.
Despite the downgrade, the analyst increased the firm’s price target for AMD stock from $190 per share to $195. That’s still well above the analyst consensus price prediction of $173 per share.
AMD stock is down 2.2% as of Wednesday morning.
Investors looking for all of the latest stock market stories are in luck!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
