"Indeed, it feels like impressing on earnings is a painfully difficult task this time of year. Perhaps that's how high the bar has been raised after an impressive past year of gains for a wide range of tech names. Either way, the market, as a whole, seems to be in quite a bad mood right now, as new AI innovations, like those served up by Anthropic, inspire fear in the hearts of software investors."
"Even if broad markets look to enter some sort of correction, I think Advanced Micro Devices shares are worth watching on the way lower. The AI boom is very much in play, but valuations do seem stretched across the board. And as every tech-related stock looks to move lower in what's shaping up to be a nasty week, there are bound to be unfairly punished stocks for dip-buyers to consider scooping up."
"In any case, it's not taking investors too long to find any tiny imperfections to justify hitting the sell button this earnings season. When it came to Advanced Micro Devices, the fourth quarter was a typical beat, with revenue and earnings comfortably beating expectations and the outlook looking up. So, why did shares collapse more than 8% in the after-hours session?"
Advanced Micro Devices beat revenue and earnings expectations in the fourth quarter, delivering a typical beat and an improving outlook. Shares fell over 8% after hours because the company’s first-quarter guidance lacked a sizable upside surprise that markets had hoped for. Valuations across tech appear stretched as the AI boom drives expectations, leaving investors quick to sell on small imperfections. Export controls are expected to reduce China sales in the first quarter, adding uncertainty to near-term revenue. Competition from dominant players such as Nvidia tightens the space for headline-grabbing results. Falling markets are creating dip-buying opportunities in unfairly punished tech stocks.
Read at 24/7 Wall St.
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