By Kanchana Chakravarty and Zaheer Kachwala
(Reuters) The actions of advanced micro-depositives dropped more than 10% on Wednesday after the income of the company’s ia fleas did not meet high expectations, strengthening its difficulties in seizing market shares of the leader of NVIDIA enraged market.
The turnover of the company’s fourth quarter of the company’s fourth quarter – an indirect indicator of its IA performance – jumped 69% to 3.9 billion dollars, compared to the estimate of the consensus of 4, $ 15 billion.
“AMD can still take Intel market share in the side of the things of the central processing unit (CPU), but it remains far behind Nvidia and has trouble catching up with graphic treatment units ( GPU), “said Ben Barringer, technological analyst at Quilter Cheviot.
“Investors want the company to fight against Nvidia, but for the moment it has a lot of trouble breaking the moat and disturbing its position on the market,” he added.
AMD should lose more than $ 19 billion in market capitalization if current losses are maintained. The shares dropped by 18% last after more than doubling in 2023 on the expectations of the company to make the boom of the AI. Meanwhile, NVIDIA’s shares won 171% in 2024.
A growing push of technology giants, including Microsoft and Meta – both AMD customers – to develop internal fleas that are cheaper and more efficient could also mitigate demand for standard AMD processors.
Bofa analysts have said that Nvidia continues to surpass and that personalized chips earn more traction in hyperscalers, it could be difficult for AMD to “win” the story of the AI despite its high growth levels.
The arrival of the Chinese AI Deepseek AI model has made investors more sensitive, said Susannah Streeter, head of money and markets in Hargreaves Lansdown.
AMD’s results and prospects have “reversed more confidence,” she added.
At least 22 analysts have reduced their price targets on action, the median now at $ 150, against $ 166.5 before the results.
The price / benefit ratio of 12 months of AMD is 23.39, against 26.27 from Nvidia.
(Report by Kanchana Chakravarty and Zaheer Kachwala in Bengaluru and Amanda Cooper in London; additional report by Purevi Agarwal; edition by Harry Robertson, Varun HK and Sriraj Kalluvila)