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Alphabet Stock and AMD Stock Near 10% Down in Afterhours As Competition Increases

Skerdian Meta•Wednesday, February 5, 2025•2 min read
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Stocks ended up higher yesterday, but the Alphabet and AMD stocks have collapsed nearly 10% in after-hours trading, after disappointing earning and growth results for Q4.

Google is falling out of interest

After disappointing earnings and weaker-than-expected growth, shares of Alphabet, Google’s parent company, and Advanced Micro Devices Inc. (AMD) tumbled in after-hours trading. AMD’s data center segment struggled to meet expectations, highlighting its ongoing challenges in competing with industry leader Nvidia in AI computing. The company is also facing growing pressure from emerging rivals like DeepSeek.

Despite AMD’s overall Q4 revenue surpassing forecasts and providing a positive outlook for the upcoming quarter, the weaker-than-expected data center performance overshadowed the otherwise solid results. Investors reacted strongly to concerns about AMD’s ability to gain ground in the competitive AI sector, adding to market uncertainty. The AMD stock fell from the closing level of $119.50 to around $$109, a decline of 10% almost, while the Alphabet stock fell from the closing price of $207.71 to around $119, which is more than 8%.

AMD & Alphabet Earnings: Key Takeaways

AMD’s Data Center Revenue Falls Short

  • Q4 data center revenue: $3.86 billion, a 69% YoY increase, but below analyst expectations of $4.09 billion.
  • Investor concerns: Slower-than-expected AI-driven growth and the rise of competitors like DeepSeek, which offers a more cost-effective approach.
  • Market impact: The miss reinforced fears that AMD’s AI momentum may be fading, causing nervousness among investors.

Alphabet’s Earnings: Strong Growth but Mixed Results

  • Total revenue: $96.47 billion, a 12% YoY increase, but missing analyst estimates of $96.56 billion.
  • Earnings per share (EPS): $2.15, exceeding expectations, compared to $1.64 per share a year ago.
  • Net income: $26.54 billion, up from $20.69 billion in the same quarter last year.

Segment Performance

  • Google Cloud revenue: $11.96 billion, up 30%, but still below expectations.
  • Google Search & Other revenue: $54.03 billion, missing forecasts, raising concerns about ad revenue growth.

While Alphabet’s earnings and revenue showed solid growth, Google Cloud and Search revenue shortfalls dampened sentiment. Meanwhile, AMD’s data center miss fueled worries about AI competition, weighing on investor confidence. Markets will closely watch both companies’ AI strategies and future earnings for signs of renewed momentum.

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Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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