**Investors Respond to AMD’s Q4 Earnings Report**
Advanced Micro Devices (NASDAQ: AMD) saw its stock plummet 17% on February 4, following a less-than-expected Q1 revenue guidance range of $9.5 billion to $10.1 billion, compared to analyst expectations. Despite a strong revenue increase of 34% for the fiscal year, totaling $34.6 billion, and a net income of $4.3 billion, the company’s high P/E ratio of 76 raised concerns among investors.
Analysts project revenue growth of 34% in 2026 and 37% in 2027, signaling that the recent dip may be an anomaly. AMD’s growth strategy continues to align with previous management forecasts of over 35% compound annual growth, driven largely by its data center and gaming segments. The anticipated performance of the MI450 AI accelerator also holds promise for future growth.
