Advanced Micro Devices shares fell 7% on Wednesday after the chipmaker under-delivered on Wall Street’s estimates for its important data center business.

Shares traded at a 52-week low and were on pace for their worst session since October.

AMD reported better-than-expected results on the top and bottom lines, but it also reported data center sales of $3.86 billion. That reflected 69% growth from a year ago but fell short of the $4.14 billion in sales expected by analysts polled by LSEG.

The key unit, responsible for selling advanced chips for data centers, has benefited in recent years from growing demand for its graphics processing units, as megacap technology companies race to develop advanced artificial intelligence tools.

Data center revenue grew 94% for the full year to $12.6 billion, with $5 billion of those sales stemming from AMD’s AI-focused Instinct GPUs. The company is the second-largest producer for gaming after Nvidia, which has triumphed as the market leader in AI chips and ballooned in value to a nearly $3 trillion market value.

“We believe this places AMD on a steep long-term growth trajectory, led by the rapid scaling of our data center AI franchise from more than $5 billion of revenue in 2024 to tens of billions of dollars of annual revenue over the coming years,” AMD CEO Lisa Su said on the earnings call with analysts.

Several Wall Street firms trimmed their price targets on shares amid the disappointing data center results and expectations for a weak first half. Citi downgraded shares to neutral from a buy rating, while JPMorgan its target to $130 from $180. Bank of America’s Vivek Arya said the company has yet to “articulate how it can carve an important niche” relative to Nvidia.

Morgan Stanley highlighted AI expectations as the most significant pressure point, saying that “visibility likely needs to improve for the stock to find its footing.”

Alphabet shares dropped more than 7% on Wednesday after the search giant fell short of Wall Street’s fourth-quarter revenue expectations and announced big spending plans for its ongoing artificial intelligence buildout.

The stock headed for its worst session in more than a year.

The company topped earnings estimates by 2 cents per share. Revenue came in at $96.47 billion, behind the $96.56 billion expected by LSEG. Alphabet’s revenue grew 12% overall from a year ago, while its YouTube advertising business, search business and services segment slowed year over year.

Alphabet also said it plans to spend $75 billion on capital expenditures as it builds out its AI offerings and races against megacap rivals to build out data centers and new infrastructure. The figure was much higher than the $58.84 billion expected by Wall Street analysts, according to FactSet.

Finance chief Anat Ashkenazi said the higher expenses will help “support the growth of our business across Google Services, Google Cloud and Google DeepMind.” She also said the spending will go toward “technical infrastructure, primarily for servers, followed by data centers and networking.”

The company expects capital expenditures to range between $16 billion and $18 billion. That was higher than the $14.3 billion estimate from FactSet.

JPMorgan analyst Doug Anmuth highlighted costs, capex and cloud revenue as the “culprits” for the stock’s post-earnings performance. Bernstein’s Mark Shmulik also noted that this is the third quarter that the stock move connects to Google’s cloud segment.

“If digital ad growth is akin to a long drive competition, then Google would be sitting comfortably here with strong Search and YouTube bombs down the fairway,” Shmulik said.

“But as the game shifts to the AI putting green, there’s little room for error with a slight cloud miss, a whopping CAPEX guide up to $75B for 2025, and lack of actionable operating leverage commentary leaves Google 3- putting for bogey,” he added.

The U.S. Postal Service said Wednesday it will resume accepting inbound mail and packages from China and Hong Kong, just hours after it suspended service from those regions.

“The USPS and Customs and Border Protection are working closely together to implement an efficient collection mechanism for the new China tariffs to ensure the least disruption to package delivery,” the agency wrote in a notice posted to its website. The change is effective immediately.

USPS announced late Tuesday it would stop accepting parcels from China and Hong Kong Posts “until further notice.”

The move came after President Donald Trump on Saturday imposed an additional 10% tax on Chinese goods, as part of sweeping new tariffs on the country’s top three trading partners. Trump on Monday agreed to hold off on imposing 25% tariffs on Canada and Mexico for 30 days.

As part of the tariffs, Trump also closed a nearly century-old trade loophole, called “de minimis,” which allows exporters to ship packages worth less than $800 into the U.S. duty-free. The suspension of de minimis is widely expected to impact upstart Chinese e-commerce companies Temu and Shein, which have relied on de minimis and grew in popularity in the U.S. due to their cheap clothing, furniture and electronics shipped directly from China.

The U.S. Customs and Border Protection agency has said it processed more than 1.3 billion de minimis shipments in 2024. A 2023 report from the House Select Committee on the Chinese Communist Party found that Temu and Shein are “likely responsible” for more than 30% of de minimis shipments into the U.S., and “likely nearly half” of all de minimis shipments originating from China.

The rise of e-commerce and the influx of low-value packages that occurred alongside it prompted Congress in 2016 to raise the de minimis threshold from $200 to $800.

Yin Lam, an analyst at Morningstar, said late Tuesday the massive volume of daily de minimis shipments into the U.S. creates a “significant challenge” for USPS because “it is difficult to check all the packages – so it will take time.”

Critics have argued the trade loophole has allowed illicit drugs, such as fentanyl, to enter the U.S. through the mail. Trade officials have also said de minimis shipments are subject to less scrutiny, raising concerns around counterfeit and unsafe goods.

— CNBC’s Evelyn Cheng contributed to this report.