AMD Stock Under Pressure After Disappointing Quarterly Figures

The stock price of the processor manufacturer AMD experienced a significant decline of 9.6% after third-quarter results fell far short of expectations. Although AMD slightly exceeded analysts' revenue estimates, the forecast for the upcoming quarter led to disappointment. An intense competitive battle in the field of artificial intelligence seems to have raised expectations in advance. Even though the stock market tends to overreact and drastic price movements can offer opportunities to invest in high-quality assets, long-term valuation remains crucial. Investors are wondering whether now is a good time to invest in AMD. The volatility of AMD's stock is unmistakable, with 21 price movements of over 5% in the last year. Today's price drop indicates that while the recent news seems important to the market, it is not seen as a fundamental change in the company's image. Twenty days ago, AMD recorded a 5.1% price drop after announcing new data center chips. This announcement came directly after Nvidia's statement that their new Blackwell GPUs are sold out for a year. AMD's CEO, Lisa Su, reaffirmed the superiority of their new platform over Nvidia, focused on specific inference benchmarks. Since the beginning of the year, AMD's stock has risen by 7.8%, but at $149.47 per share, it remains 29.3% below its 52-week high of $211.38 from March 2024. Long-term investors still consider their investment in AMD to be worthwhile.