AMD Shares Plunge 17% as Weaker-than-Expected Earnings Trigger Sell-Off

AMD shares plunged 17% on February 4th, before rebounding slightly by 2.086% in after-hours trading. According to CNBC analysis, the plunge was due to AMD's first-quarter earnings guidance failing to meet the aggressive expectations of some analysts. AMD's fourth-quarter earnings report, released Tuesday, showed revenue of $10.27 billion (approximately RMB 71.378 billion), exceeding the consensus estimate of $9.67 billion from LSEG. However, $390 million in revenue from the Chinese market was not included in Wall Street's previous estimates, resulting in only a slight improvement after excluding this portion. Furthermore, the company projected a median revenue of $9.8 billion for the first quarter, falling short of the market expectation of $10 billion. Coupled with continued increases in operating expenses, this further amplified market concerns and dragged down the share price.