Skip to main content

AMD's Stock Plummets, Worst Single-Day Drop In More Than A Decade

AMD reported its quarterly earnings yesterday after the stock market closed, but the company's stock began plunging almost immediately in after hours trading. Now, twelve hours later, AMD has suffered its biggest single-day decline in more 12 years. At the time of publication, AMD's stock has fallen 24.38% to $10.35 per share, which is close to the 26.2% loss it experienced on January 11, 2005. 

AMD has had a banner year to this point (it wasn't long ago that we covered its 330% gain), and overall the company quadrupled its share price last year. AMD reported strong results that were in line with expectations, but the fickle stock market punished the company after it revealed lower-than-expected margins and relatively low Q2 margin guidance. AMD reported a 33% margin for Q2, which is only slightly lower than the 34% it posted in Q1.

AMD reported $984 million in revenue (up 18% year over year) and a $29 million net operating loss (down from $73 million year over year) as it claws its way back to profitability. The company also reported an 18% revenue increase due to Ryzen and GPU sales.

Notably, AMD has shipped Ryzen processors for only one month of the quarter, and it also has Vega slated for release in Q2. AMD's Naples platform will also help contribute moving forward, and market share gains in the lucrative data center segment will be a key growth driver in the future. AMD's Ryzen 3 processors are also slated for the second half of the year, which could help boost sales volume.

  • dstarr3
    Pardon me, I have some stocks to purchase.
    Reply
  • bryan_72
    something definitely smells fishy about this.
    Reply
  • OldStabby
    Just don't sell. That would be what institutional traders want you to do. It's a case of market manipulation by big traders.
    Reply
  • nzalog
    Remember when everyone was saying "Intel is doomed"? Pepperidge farm remembers...
    Reply
  • dstarr3
    Ryzen only launched last month. Much too early for their numbers to reflect that. Wait until the end of Q2 and watch that turnaround.
    Reply
  • supert3d1975
    Time to buy more! :-)
    Reply
  • valeman2012
    19639403 said:
    Remember when everyone was saying "Intel is doomed? Pepperidge farm remembers...

    Intel clearly letting AMD temporarily step forwarded.


    Looks like AMD was messing around when they said they going beat Intel i7 6900K --- 69%
    Reply
  • why_wolf
    It's a hype drop so good time to buy, though remember absolutely nothing guarantees the price will ever go back up.
    Reply
  • nzalog
    19639497 said:
    19639403 said:
    Remember when everyone was saying "Intel is doomed"? Pepperidge farm remembers...

    Intel clearly letting AMD temporarily step forwarded.


    Looks like AMD was messing around when they said they going beat Intel i7 6900K --- 69%

    AMD did a great job but I think people forget how big Intel is. I've had people telling me that Intel is done for and all sorts of <mod edit> like that. I was nice and didn't laugh in their face.
    Yes, as gamers we think we're all that matters but there are a ton of companies that trust Intel for their workstations and servers. So one OK product from AMD isn't going to dethrone Intel anytime soon.

    This however is just the stock market and honestly doesn't honestly reflect how well AMD is doing (especially this little slice in time).
    Reply
  • blppt
    The simple explanation is that the traders are all rabid gamers with monster gaming PCs, disappointed that we still have no Vega.
    Reply