AMD's Q1 Guidance Falls Short, Stock Drops 9%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 04 2026
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Should l Buy AMD?
Source: Newsfilter
AMD's stock dropped 4.32% to hit a 20-day low, reflecting market disappointment over its Q1 guidance amid a broader tech sell-off.
The company's Q1 revenue forecast of $9.8 billion fell short of market expectations of $9.38 billion, undermining investor confidence despite a strong Q4 earnings report where revenue surpassed estimates at $10.27 billion. Analysts noted that AMD's guidance failed to meet elevated expectations, particularly in the context of ongoing growth in AI spending, which had significantly raised performance expectations. Furthermore, AMD's partnership with OpenAI is expected to drive future growth, with plans to deploy 6 gigawatts of Instinct GPUs starting in the second half of 2026.
This disappointing guidance has led to a significant drop in AMD's stock price, highlighting the challenges the company faces in meeting investor expectations in a competitive AI market, even as it continues to expand its partnerships and product offerings.
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Analyst Views on AMD
Wall Street analysts forecast AMD stock price to rise
33 Analyst Rating
25 Buy
8 Hold
0 Sell
Strong Buy
Current: 192.430
Low
210.00
Averages
289.13
High
377.00
Current: 192.430
Low
210.00
Averages
289.13
High
377.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing, graphics and visualization technologies. Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes artificial intelligence (AI) accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), smart network interface Cards (SmartNICs) and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, GPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Lagging Technology Updates: The current Abilene site is expected to utilize Nvidia's Blackwell processors, which are projected to come online next year, while OpenAI aims to access more powerful next-generation chips elsewhere, potentially affecting its product competitiveness.
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See More
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- Key Contract Analysis: For UTHR, the $560 strike call option has seen 754 contracts traded, approximately 75,400 shares, indicating investor confidence in UTHR's potential price appreciation in the near future.
See More
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See More
