- Shares of Advanced Micro Devices and Super Micro Computer sank on Wednesday, sparking a selloff in chip stocks, after their earnings disappointed investors who have piled into the sector on hopes rising AI investments would boost demand.
Super Micro Computer, whose near-200% stock jump this year has outpaced even gains in Nvidia, tumbled over 11% as its third-quarter revenue missed estimates amid questions over the profitability of a new line of servers.Executives of both AMD and Super Micro Computer said supply constraints were hampering their efforts to capitalize on demand for equipment powering the boom in generative AI.
Other AI-linked chip firms also traded lower, with Marvell Technology, Micron Technology and Nvidia down between 1.5% and 2.5%. "Against a very large AI computing TAM , we believe AMD is well on the way to cementing its position as the de facto alternative to Nvidia's leadership position," analysts at TD Cowen said.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »
Source: YahooFinanceCA - 🏆 47. / 63 Read more »