Aug 5 (Reuters) – Advanced Micro Devices shares declined before the bell on Wednesday as the chipmaker’s stronger-than-expected revenue forecast \u200cfell short of lofty expectations and investors sought clearer \u200csigns that a multibillion-dollar AI spending boom will translate into faster growth. <\/p>\n
The shares were \u200blast down 7.4% at $480.28, set to wipe out about $61.1 billion from AMD’s market value. <\/p>\n
The move underscores elevated expectations facing AMD as it aims to challenge Nvidia’s dominance amid intensifying competition with Intel racing to \u200cregain technology leadership after \u2060strong results. <\/p>\n
“We suspect expectations had moved higher following Intel’s results a couple of weeks ago, and the \u2060buyside already has a fairly bullish outlook,” said Stacy Rasgon, analyst at Bernstein. <\/p>\n
Analysts at TD Cowen called AMD’s results and forecast “objectively good” but \u200bsaid the \u200bstock was facing a “very high \u200bbar” following recent AI-related customer \u200cannouncements and the sharp rally in the shares. <\/p>\n
The Santa Clara, California-based company forecast third-quarter revenue of about $13 billion, plus or minus $300 million, above analysts’ estimates of $12.52 billion, according to data compiled by LSEG. <\/p>\n