Image Source: UnsplashAdvanced Micro Devices (AMD) recently reported its projection for AI chip sales in 2024, estimating a revenue of $4 billion. While the figure fell short of Wall Street’s expectations, it’s important to note the significant potential of AMD’s AI chip sales, especially when compared to the higher forecasts provided by competitor Nvidia (NVDA).Consequently, AMD’s shares experienced a notable drop, declining by almost 9% and trading at $144.27 at the time of writing. Analysts have expressed mixed views on the company’s prospects, with some reducing their price targets while others maintain a positive outlook given the broader potential of the AI chip market.

Super Micro Computer (SMCI) Reports Mixed Q3 Results, Shares Plunge
Super Micro Computer (SMCI) released its third-quarter earnings after market close yesterday, reporting a revenue of $3.85 billion. This represents a substantial increase from $1.28 billion in the same period last year, although it fell slightly short of the expected $3.95 billion.

However, the company exceeded expectations on earnings per share, reporting $6.56 compared to the anticipated $5.78. Looking ahead, SMCI raised its revenue guidance for 2024 to $15.1 billion, up from the previous estimate of $14.7 billion.This revised guidance surpasses analysts’ predictions of $14.60 billion, indicating strong growth potential for the company. Despite the positive outlook, SMCI’s share price fell sharply by 17.98% following the earnings miss, reflecting the market’s high expectations and reaction to the slight revenue shortfall.

Chip Stocks Decline Amid Market Pressures
Several prominent chip stocks experienced declines following the earnings reports from AMD and SMCI. Broadcom (AVGO) saw its shares fall by 2.00%, dropping the stock price to $1,274.31 at the time of writing. Notably, Nvidia also saw a decline in its share price by over 4% to $825.78 at the time of writing.Qualcomm (QCOM) experienced a minor decrease as well, with its stock slightly falling by 0.11% at $165.66. Despite this slight dip, Qualcomm’s overall year-to-date performance remains strong, with the company having posted significant gains. The minor decrease is a temporary adjustment rather than a substantial shift in the company’s market position.More By This Author:Two Utility Stocks That Can Gain From AI’s Growing Energy Demand Amazon Set To Report Q1 After Market Close, What To Expect 3M’s Q1 Shows Marginal Sales Decline Offset By Strong Operational Performance