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AMD stock fell 7% on Wednesday after the company reported second-quarter results. Analysts blamed the weakness on high expectations for high-end MI300 chips, as well as “somewhat conservative 2024 data center commentary in callbacks.”
“The AMD quarter should have been a relief, given near universal sentiment that they would guide well below expectations for servers (they didn’t), and that their expectation for margin recovery in PCs was unrealistic (it wasn’t),” they said in a client note.
“Guidance for flat y/y servers in 3q – up 15-20% q/q – with clear eyes about the current cloud weakness should be an indication that share gains and the delayed Genoa ramp are in good shape. We expected the stock to be up meaningfully,” the analysts added.
Overall, they believe AMD will be “a significant outperformer” relative to other chip stocks.
AMD stock recovered half of Wednesday’s losses yesterday and is up a further 0.4% in early Friday trading.
