AMD(US:AMD) Xin Lang Cai Jing·2026-02-04 19:06Core Viewpoint - Advanced Micro Devices (AMD) stock plummeted 17%, marking its largest percentage drop since 2017, after the company's earnings report failed to meet Wall Street's high expectations [2][4]. Financial Performance - AMD reported a revenue of $10.27 billion for Q4, exceeding analyst expectations of $9.69 billion according to a FactSet survey [5]. - The revenue boost was largely attributed to unexpected chip sales in the Chinese market, raising concerns among analysts about rising expenditures [5]. Analyst Sentiment - Some analysts expressed disappointment regarding AMD's sales outlook for Q1, suggesting that investor expectations may have become overly optimistic [5]. - TD Cowen analysts noted that under normal circumstances, the earnings report would be considered "very solid" [5]. Market Context - Investors have recently adopted a stringent attitude towards stocks involved in the AI arms race, particularly due to increasing concerns about the sustainability of this trading wave [5]. - Competitors like Nvidia also experienced stock declines following their earnings reports, which, while decent, were still deemed insufficient [5].