- AMD (AMD) shares fall in premarket trading after the chipmaker failed to impress investors with its revenue forecast after an eye-popping rally sent expectations soaring. Fourth-quarter revenue will be roughly $9.6 billion, the company said in a statement Tuesday. Though analysts had estimated $9.2 billion on average, some projections ranged as high as $9.9 billion. Investors have bet heavily on AMD following blockbuster agreements with OpenAI and Oracle, which plan to use the company’s chips in their build-out of artificial intelligence computing. The hope is that AMD can finally crack Nvidia’s dominance in the AI processor market.
- Super Micro Computer (SMCI) shares tumbled in early trading after the server maker missed reduced estimates for first-quarter sales and profit and gave a disappointing earnings forecast for the current period, reinforcing concerns about its ability to capitalize on demand for AI equipment. Excluding some items, earnings in the period ending in December will be 46 cents to 54 cents a share, the company said Tuesday in a statement. Sales will be $10 billion to $11 billion. Analysts on average had projected profit of 62 cents on sales of $8.05 billion.Super Micro emerged as a favorite stock among artificial intelligence-obsessed investors last year because the servers it makes are used to run rapidly growing AI workloads.
- Shares of Humana (HUM) dipped lower ahead of the US market open after posting third-quarter profit above Wall Street’s expectations, making it the latest health insurer to report a better job managing the increasing cost of health care. The results bode well for Humana’s strategy to grow profitability in its Medicare Advantage business, its largest unit, which provides a private version of the government health insurance program for seniors. The company has stated a goal of achieving profit margins of 3% in its individual plans.

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