AMD And Super Micro Stocks Tumble On Disappointing Earnings

Shares of Advanced Micro Devices (AMD) and Super Micro Computer plummeted following disappointing earnings reports, triggering a broader selloff in chip stocks, Harshita Mary Varghese reported for Reuters.

AMD's premarket trading saw a more than 6% decline, resulting in a potential loss of over $16 billion in market value. I Photo: AMD Facebook

AMD's premarket trading saw a more than 6% decline, resulting in a potential loss of over $16 billion in market value. The company's forecast of $4 billion in AI chip sales for 2024 fell short of Wall Street's expectations.

Similarly, Super Micro Computer experienced an over 11% decline as its third-quarter revenue missed estimates, raising concerns about the profitability of its new line of servers.

Executives from both companies cited supply constraints as a hindrance to capitalizing on the growing demand for equipment powering the surge in generative AI.