Is the boom in AI spending already priced in?

  • AMD stock fell 3.7% despite increased sales guidance for AI chips
  • Boom in AI spending may be priced in, at least in the short term
  • AMD’s forecast for MI300 chip revenue raised to $3.5 billion
  • Analysts had suggested a forecast of $6 billion or higher
  • Wall Street analysts maintain Buy ratings and raise target prices
  • AMD stock’s drop suggests high expectations for AI stocks this earnings season
  • Investors now turn to Nvidia’s upcoming earnings report

AMD stock fell 3.7% in early trading despite the company’s massive increase to sales guidance for its datacenter artificial-intelligence chips. The boom in AI spending may already be priced in, at least in the short term. AMD’s forecast for MI300 chip revenue was raised to $3.5 billion, but some analysts had suggested a forecast of $6 billion or higher. Wall Street analysts maintain Buy ratings and raise target prices, but AMD stock’s drop suggests that anything less than a huge guidance raise will be treated harshly when it comes to popular AI stocks this earnings season. Investors in the AI chip sector will now turn to Nvidia’s upcoming earnings report.

Public Companies: AMD (AMD), Nvidia (NVDA), Intel (INTC)
Private Companies:
Key People: Lisa Su (CEO of AMD), Ben Reitzes (Analyst at Melius Research), Angelo Zino (Analyst at CFRA Research), Cody Acree (Analyst at Benchmark Research)

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Factuality Level: 7
Justification: The article provides information about AMD’s stock falling despite an increase in sales guidance for its AI chips. It includes quotes from analysts and their target prices for the stock. The article also mentions the drop in Intel’s stock following its earnings report. Overall, the article provides factual information about the stock market performance of AMD and Intel in relation to AI chips.

Noise Level: 3
Justification: The article provides relevant information about AMD’s stock performance and its datacenter AI chips. It includes analyst reactions and target price updates. However, there is some repetitive information and filler content, such as the mention of text-to-speech technology and the upcoming earnings report of Nvidia and Intel, which are not directly related to the main topic.

Financial Relevance: Yes
Financial Markets Impacted: AMD stock

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the stock performance of AMD, a technology company. While there is no mention of an extreme event or any specific financial impact, the article provides information relevant to financial markets and companies.

Reported publicly: www.marketwatch.com