Lisa Su, chair and chief executive officer of Advanced Micro Devices Inc., displays an AMD Instinct MI455X GPU during the 2026 CES event in Las Vegas, Jan. 5, 2026.
Chipmaker Advanced Micro Devices dropped 12% 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 artificial intelligence.
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.