AMD stock sinks despite positive Q4 earnings, Chipotle narrowly tops estimates

Market Overview - Major stock indices closed lower, with the Dow down 166 points (approximately 0.33%), the NASDAQ composite down nearly 1.5%, and the S&P 500 down about 0.8% [1][2] - The tech sector was the worst performer, down 2.2%, while energy was the best performing sector, up 3% [4][5] Sector Performance - Energy, materials, staples, and industrials closed at record highs, with energy recently achieving its first record high in over a decade [4] - The transportation sector saw a notable increase of 2% on the day, totaling a 5% rise when including the previous day's performance [3] Company Earnings - Chipotle - Chipotle reported Q4 adjusted EPS of $0.25, slightly above the expected $0.24, with revenue of $2.98 billion, surpassing the consensus of $2.96 billion [29] - Comp sales were down 2.5%, better than the expected decline of 2.94%, but the guidance for 2026 comp sales was flat, below the anticipated growth of 1.8% [29][34] - The company plans to open between 350 to 370 new restaurants in 2026, slightly below analyst expectations of 357 [30] Company Earnings - AMD - AMD reported Q4 EPS of $1.53 on revenue of $10.3 billion, exceeding expectations of $1.32 and $9.6 billion respectively [50] - Data center revenue was reported at $5.4 billion, above the expected $4.97 billion, and the Q1 revenue outlook was better than expected, projected between $9.5 billion and $10.1 billion [51] - Despite the positive earnings, AMD shares fell over 5% in after-hours trading, possibly due to high market expectations [52][54] Analyst Insights - Analysts noted that AMD's data center business showed continued strength, with a nearly $500 million increase in market share, and a 39% annual increase in the client-side business [56] - Concerns were raised about the potential impact of a global memory shortage on PC demand, which could affect AMD's bottom line [58] - Analysts believe AMD is well-positioned with upcoming products that could compete effectively against Nvidia, particularly in the data center market [60][62]