Plunge

2024

Chip

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<p class="has-drop-cap">Advanced Micro Devices (NASDAQ: AMD) recently reported its projection for AI chip sales in 2024, estimating a revenue of <a href="https://www.cnbc.com/2024/04/30/amd-gaming-revenue-falls-48percent-year-over-year-and-the-stock-is-down.html" target="_blank" aria-label="$4 billion (opens in a new tab)" rel="noopener noreferrer nofollow" class="deco-link">$4 billion</a>. While the figure fell short of Wall Street’s expectations, it’s important to note the significant potential of AMD’s <a href="https://tokenist.com/3-small-cap-ai-stocks-with-serious-growth-potential/" rel="noopener noreferrer nofollow" class="deco-link">AI chip sales</a>, especially when compared to the higher forecasts provided by competitor Nvidia (NASDAQ: NVDA).</p>
<p>Consequently, AMD’s shares experienced a notable drop, declining by almost 9% and trading at $144.27 at the time of writing. Analysts have expressed mixed views on the company’s prospects, with some reducing their price targets while others maintain a positive outlook given the broader potential of the AI chip market.</p>
<h3 id="super-micro-computer-smci-reports-mixed-q3-results-shares-plunge">Super Micro Computer (SMCI) Reports Mixed Q3 Results, Shares Plunge</h3>
<p>Super Micro Computer (NASDAQ: SMCI) released its <a aria-label="third-quarter earnings (opens in a new tab)" href="https://finance.yahoo.com/news/super-micro-computer-inc-smci-073615152.html" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">third-quarter earnings</a> after market close yesterday, reporting a revenue of $3.85 billion. This represents a substantial increase from $1.28 billion in the same period last year, although it fell slightly short of the expected $3.95 billion. <br><br>However, the company exceeded expectations on <a href="https://tokenist.com/investing/how-to-value-a-stock/" rel="noopener noreferrer nofollow" class="deco-link">earnings per share</a>, reporting $6.56 compared to the anticipated $5.78. Looking ahead, SMCI raised its revenue guidance for 2024 to $15.1 billion, up from the previous estimate of $14.7 billion.</p>
<p>This revised guidance surpasses analysts’ predictions of $14.60 billion, indicating strong growth potential for the company. Despite the positive outlook, SMCI’s share price fell sharply by 17.98% following the earnings miss, reflecting the market’s high expectations and reaction to the slight revenue shortfall.</p>
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<h3 id="chip-stocks-decline-amid-market-pressures">Chip Stocks Decline Amid Market Pressures</h3>
<p>Several prominent chip stocks experienced declines following the earnings reports from AMD and SMCI. Broadcom (<a href="https://tokenist.com/three-semiconductor-stocks-to-hold-as-the-market-rebounds/" rel="noopener noreferrer nofollow" class="deco-link">NASDAQ: AVGO</a>) saw its shares fall by 2.00%, dropping the stock price to $1,274.31 at the time of writing. Notably, Nvidia also saw a decline in its share price by over 4% to $825.78 at the time of writing.</p>
<p>Qualcomm (NASDAQ: QCOM) experienced a minor decrease as well, with its stock slightly falling by 0.11% at $165.66. Despite this slight dip, Qualcomm’s overall year-to-date performance remains strong, with the company having posted significant gains. The minor decrease is a temporary adjustment rather than a substantial shift in the company’s market position.</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe>
<p><strong><em>Do you think chip stocks are due for a correction? Let us know in the comments below.</em></strong></p>
<p><em>Disclaimer: The author does not hold or have a position in any securities discussed in the article.</em></p>
<h3 id="br"><br></h3>
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/chip-stocks-plunge-after-amds-2024-guidance-falls-short-of-expectations/">Chip Stocks Plunge After AMD’s 2024 Guidance Falls Short of Expectations</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Chip Stocks Plunge After AMD’s 2024 Guidance Falls Short of Expectations

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