AMD Slides After AI Chip Forecast Misses Lofty Estimates
- Sluggish gaming chip demand also has weighed on sales
- Investors waiting for new AI processors to fuel more growth
The Advanced Micro Devices headquarters in Santa Clara, California.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Advanced Micro Devices Inc. shares declined as much as 8.1% after the chipmaker gave a disappointing forecast for artificial intelligence processors, a lucrative market now dominated by Nvidia Corp.
The company projected that its MI300 lineup — a family of so-called AI accelerators — will generate about $4 billion in revenue this year. Though that’s up from an earlier prediction of $3.5 billion, some investors were hoping for as much as $8 billion, according to analysts.