Qualcomm (QCOM) will face serious selling pressure after it posted quarterly results last night. QCOM stock traded lower after reporting $3.50 in non-GAAP EPS. Revenue grew by an anemic 5.4% Y/Y to $12.3 billion.
Amid the weak sales growth, pressure from shareholders might mount on Qualcomm to replace its leadership team.
Advanced Micro Devices (AMD) lost 17.31% on February 4, closing at around $200. The stock is $67 below its 52-week high as markets re-adjust the downside sales risk in China. AMD CEO Lisa Su would not forecast more than $100 million in AI server sales for the current first quarter. Tariffs, trade wars, and China’s unwillingness to buy US-based chips created sales uncertainties.
AMD stock had soared months ago after OpenAI made a deal to buy its servers. However, tension between Nvidia (NVDA) CEO Jensen Huang and OpenAI worsened. Aside from this drama, investors are not ignoring OpenAI’s inability to generate profits. That puts its hardware orders in jeopardy.
AMD’s weak stock sent Seagate (STX), Western Digital (WDC), known as WD, Broadcom (AVGO), Micron (MU), and Lam Research (LRCX) lower.
Investors flocked to safe-haven sectors. Drug stocks like Amgen (AMGN) and Lilly (LLY) rose by 8% and 10%, respectively. After it posted quarterly earnings, AbbVie (ABBV) fell by nearly 4% on Wednesday.
