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Why is AMDY Down Today After Data Center Miss

The YieldMax AMD Option Income Strategy ETF (AMDY) closed down 5.18% at $9.15 on February 5th, as Advanced Micro Devices (AMD) shares fell sharply following disappointing data center revenue results. AMD's data center sales reached $3.86 billion, reflecting a 69% y/y growth but falling short of the $4.14 billion expected by analysts. This shortfall led to a significant drop in AMD's stock price, which fell over 8% during the trading session. The data center unit, crucial for AMD's growth, has been under pressure as it competes with Nvidia in the AI chip market. Several Wall Street firms, including Citi and JPMorgan, have downgraded AMD's stock and lowered price targets, citing concerns over AI revenue growth and transparency. The market's reaction underscores the importance of data center performance in AMD's overall valuation, with analysts highlighting the need for improved visibility in AI-related revenues.