Advanced Micro Devices Stock Decline
Advanced Micro Devices (NASDAQ: AMD) recently experienced a 9% decline in its stock price despite optimism surrounding its advancements in the artificial intelligence (AI) chip market. This downturn follows announcements made at the CES trade show last week, where significant developments, including the upcoming MI450 chip, were presented.
Despite the drop, AMD is forecasting a compound annual growth rate (CAGR) of 35% for its revenue over the next three to five years, with its data center business anticipated to grow at over 60%. CEO Lisa Su noted that AI could reach approximately 5 billion daily active users, indicating strong future demand for AMD’s offerings amidst a global compute shortage.
