Advanced Micro Devices Inc. (AMD) plummeted in late trading after revealing a disappointing forecast for its data center business, which has been struggling to keep pace with Nvidia Corp., the leader in AI computing.
Despite this setback, AMD fared better than expected in the PC market, posting gains over rival Intel. However, investors remained unimpressed with the company’s prediction that its data center division would grow by a significant percentage in the second half of the year. This lackluster outlook contributed to the decline in AMD stock prices, as the industry has seen Nvidia’s sales more than double in each of the past two years.
Source: https://www.bloomberg.com/news/articles/2025-02-04/amd-s-strong-forecast-eases-concerns-about-ai-chip-slowdown