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For lack of a better description, Advanced Micro Devices (NASDAQ: AMD) stock fell off a cliff following the company’s latest earnings report and found itself 10.07% in the red on the daily chart once the February 5 morning bell rang. AMD stock 5-day price chart. Source: Finbold The violent reaction is somewhat surprising as the semiconductor giant’s latest figures show the firm outperformed expert forecasts in terms of revenue – $7.66 billion instead of the predicted $7,53 billion – and earnings-per-share (EPS) – $1.09 instead of the expected $1.08. Still, AMD’s failure to beat the estimates of data center revenue – which stood at $4.14 billion – by reporting a substantially lower $3.86 billion could hold the answer for the steep and rapid decline. Indeed, Advanced Micro Devices has suffered throughout 2024 due to its perceived failure to meet the expectations set by the ongoing artificial intelligence (AI) boom and to gain ground against its main competitor, Nvidia (NASDAQ: NVDA).  Could AMD stock collapse under $100? Data center revenue has, due to the aforementioned boom, become a particularly watched metric given its importance for AI technology. AMD stock’s February 5 collapse has also raised a dangerous possibility that the world’s other semiconductor giant might see its shares plunge below $100. Along with the data center revenue miss and the generally battered state of the equity, other recent developments appear to have solidified the downturn. Specifically, as Finbold reported on February 3, Nvidia was itself at risk of collapsing under $100 once the novel Chinese DeepSeek AI model was unleased as it, due to its reported efficacy and cost-efficiency, cast doubt on the hundreds of billions invested in Silicon Valley. As it operates within the same industry, AMD suffered from similar headwinds and the same can be said about NVDA stock’s…

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Filed under: News - @ February 5, 2025 5:22 pm