As Nvidia's main challenger in the artificial intelligence (AI) processor market, AMD's current outlook is disappointing, showing that its progress in the AI field has not met the previous expectations of some investors. First-quarter sales are expected to be about $9.8 billion, the company said in a statement Tuesday. Data show that analysts' average forecast is US$9.39 billion, but some forecasts exceed US$10 billion.
The outlook disappointed investors who had hoped to see greater returns from AI computing spending. AMD is still chasing Nvidia in this lucrative market, but the chipmaker has said a new, more powerful design due in the second half of this year could give it an advantage.
After the results were released, AMD's stock price fell more than 5% after hours. As of Tuesday's close, the stock was up 13% this year.