Chipmaker Advanced Micro Devices (AMD) dropped 9% in early market premarket trading on Wednesday after its first-quarter forecast fell short of some analyst expectations.
AMD reported revenue of $10.27 billion for the fourth quarter that topped LSEG consensus estimates of $9.67 billion on Tuesday.
The company said it expects $9.8 billion in revenue for the first quarter, plus or minus $300 million, versus expectations of $9.38 billion. But some analysts had predicted the chipmaker would provide stronger guidance for the first-quarter amid an ongoing boom in spending for the processors needed to power AI.
AMD, which alongside Nvidia is one of the key makers of AI chips, has seen its stock surge more than 100% in the past year on the back of rising demand.