AMD’s Big Gaming Correction Not Worrying UBS Analysts

AMD’s projected slump in its gaming business isn’t worrying analysts at UBS. They say in a research note that the gaming segment is seeing a larger-than-expected correction, as the chipmaker forecasts an implied 30% sequential drop in gaming revenue in the next two quarters. Still, the analysts say AMD raised its implied revenue guidance for its data center business, which includes AI chips. That segment is core to their investment thesis, and they see it on track to generate half of revenue in 2024. “If this were AMD’s only business, this would have been a great result & guidance as momentum continues to grow,” they say. Shares fall 2.5% to $167.74.

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