Overview
- Shares fell roughly 18% from recent highs across several sessions, including an 11% drop after earnings and a further 5.6% decline to $339.86 on Monday.
- Fiscal Q4 topped estimates with $18.01 billion in revenue, up 28% year over year, as AI semiconductor sales rose 74% and management guided Q1 revenue to about $19.1 billion above consensus.
- Management forecast about a 100-basis-point sequential gross margin decline in Q1 due to a higher mix of lower-margin AI hardware, which has weighed on sentiment.
- The company disclosed roughly $73 billion in AI-related backlog, including about $53 billion in custom silicon expected to convert over six quarters, and highlighted expanding engagements with major AI customers.
- Truist (Buy, $500), Cantor Fitzgerald (Overweight, $525) and J.P. Morgan (Overweight, $475) reaffirmed bullish views after the sell-off, citing durable AI demand and strong free cash flow, including $7.5 billion reported for the quarter.