Advanced Micro Devices (AMD) is facing significant investor concern following its fourth-quarter earnings report, which highlighted a weaker-than-expected performance in its data center segment. Despite a notable 69% y/y increase in data center sales to $3.86 billion, the figure fell short of the $4.14 billion analysts had anticipated. This shortfall has raised questions about AMD's competitive position against Nvidia in the AI and data center markets. Additionally, AMD's gaming segment reported a steep 59% decline in revenue, primarily due to reduced semi-custom chip sales as major clients like Microsoft and Sony work to lower channel inventory. The company's AI revenue outlook for early 2025 also failed to meet investor expectations, further contributing to the negative sentiment surrounding the stock.
The GraniteShares 2x Long AMD Daily ETF (AMDL) experienced a sharp decline, dropping 18.06% to $5.99 at 7:00 AM on Wednesday, February 5.