US Stocks Move｜AMD Drops Over 7% After Hours as Revenue Forecast Disappoints the Market

Glonghui, February 4th｜Advanced Micro Devices (AMD.US) fell more than 7% after hours, trading at $224.93. AMD announced that its operating profit for the fourth fiscal quarter reached $2.85 billion, exceeding analysts' expectations of $2.47 billion; adjusted earnings per share were $1.53, higher than the market estimate of $1.32; operating revenue was $10.27 billion, including $390 million from sales of MI308 artificial intelligence (AI) chips in China, with overall revenue surpassing analysts' expectations of $9.65 billion. During the period, the operating profit margin was 28%, higher than analysts' expectations of 25.4%; capital expenditures were $222 million, less than the market estimate of $231 million; R&D expenses were $2.33 billion, more than analysts' expectations of $2.16 billion. AMD expects first-quarter operating revenue to be between $9.5 billion and $10.1 billion, higher than the average analyst estimate of $9.39 billion, but some forecasts exceeded $10 billion, which disappointed investors who had hoped to see increased AI computing power and greater returns; adjusted gross margin is expected to be about 55%, higher than the market expectation of 54.5%.