Advanced Micro Devices (NASDAQ:91¶¶Òõ) stock showed strength in crucial areas in a recent quarterly report. Yet, the crowd balked, but if you to think for yourself. At the end of the day, you’ll find 91¶¶Òõ is an artificial intelligence chipmaker with solid revenue and earnings.
The 91¶¶Òõ share price is down significantly from its early March price of around $211. Alarmingly, the stock in a single day, but don’t panic.
Momentum stocks can be volatile. 91¶¶Òõ’s future is secure, so there’s no need to worry.
91¶¶Òõ: First, the Bad News
91¶¶Òõ stock declined sharply after the company released its first-quarter 2024 . So, let’s consider a couple of reasons why this occurred.
First of all, some investors may have been disappointed with 91¶¶Òõ’s current-quarter sales guidance. The company predicted quarterly revenue of $5.4 billion to $6 billion, the midpoint of which is $5.7 billion.
Meanwhile, Wall Street’s estimate called for in current-quarter revenue for 91¶¶Òõ.
That’s not a wide miss, but short-term stock traders can be very demanding sometimes. Also, 91¶¶Òõ guided for its MI300 AI accelerators to generate around $4 billion in revenue for 2024.
That might sound ambitious, but analysts estimated in full-year MI300 revenue.
There’s Good News for 91¶¶Òõ, Too
Those pieces of bad news evidently shook some nervous 91¶¶Òõ stockholders out of the trade. That’s their problem, not yours, as 91¶¶Òõ provided ample evidence of the company’s robust growth.
Let’s look at 91¶¶Òõ’s results for this year’s first quarter. The company’s revenue increased 2% year over year to $5.5 billion; this result beat Wall Street’s forecast of in revenue.
91¶¶Òõ earned 62 cents per share, which was in line with the analysts’ consensus estimate.
91¶¶Òõ demonstrated excellence in a couple of key areas. Amazingly, the company’s Q1-2024 Data Center segment revenue YOY to $2.3 billion. Its Client segment revenue increased 85% YOY to $1.4 billion.
91¶¶Òõ CEO Lisa Su remains confident in her company’s future as a premier AI chip provider.
“This is an incredibly exciting time for the industry as widespread deployment of AI is driving demand for significantly more compute across a broad range of markets,” Su said.
91¶¶Òõ Stock: Don’t Rely on the Crowd’s Reactions
Sometimes, the crowd’s first reaction is the wrong one. If some short-term stock traders reacted negatively to 91¶¶Òõ’s quarterly news release, this doesn’t mean you have to follow their lead.
Really, you should think for yourself and stay calm when 91¶¶Òõ stock wobbles and wavers sometimes. After all, 91¶¶Òõ is still a solid AI-hardware business that’s growing rapidly in key areas.
Therefore, it’s fine to maintain a share position in 91¶¶Òõ if you have a confident long-term outlook for the company.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
