AMD's Stock Got Crushed Today. CEO Lisa Su Says Demand Is 'On Fire'

Core Insights - AMD's stock experienced a significant decline of over 17% despite reporting quarterly earnings that exceeded Wall Street estimates, indicating a disconnect between market expectations and actual performance [1][1] - CEO Lisa Su expressed optimism about the company's future, describing 2023 as a "big inflection year" and highlighting strong demand for AMD's chips, which she stated is "on fire" [1][1] - AMD is preparing to launch its next-generation AI products in the second half of the year, with expectations that revenue from its MI450 chip will begin contributing in Q3 [1][1] Financial Performance - AMD's quarterly earnings surpassed Wall Street estimates, yet the stock still fell, suggesting that investor expectations may have been overly optimistic [1][1] - The company's shares closed around $200, significantly below Wall Street's consensus price target of approximately $276 [1][1] Market Position and Future Outlook - AMD is positioned as a competitor to Nvidia in the AI chip market, with the upcoming launch of its MI450 chip aimed at challenging Nvidia's offerings [1][1] - The data center segment, which is crucial for AMD's revenue, is projected to grow by more than 60% annually over the next three to five years as demand for AI technology accelerates [1][1]