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Advanced Micro Devices NASDAQ: AMD is at a significant turning point.
The share price imploded following the Q4 release, but investors should not fear the move. The decline is a knee-jerk reaction to expected news, setting the market up for another run. The Q4 results did not catalyze a rally but highlighted a bifurcation in the semiconductor market. On the one hand, end-market normalization continues to impact some segments while the cloud and AI are driving growth in others.
This bifurcation is creating a headwind to growth, seen in the Q1 outlook, below the analysts' consensus forecast, but a turning point is at hand. End-market inventory normalization is expected by the end of the year, and data center/AI sales are ramping. At some point this year, these forces will align to supercharge revenue and drive margin expansion and earnings.
Click here to learn more about the latest analysis.

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William Bushee MarketBeat |
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