AMD Shares Decline After Modest Revenue Forecast Amid AI Market Competition

Advanced Micro Devices (AMD) shares fell sharply following a cautious sales forecast that raised concerns about its competitiveness against AI chip leader Nvidia. AMD projected first-quarter revenue around $9.8 billion, slightly above estimates but below the previous quarter's $10.27 billion. The forecast included a $390 million boost from resumed China sales under a U.S. license. CEO Lisa Su anticipates stronger AI server demand in the year's second half, despite current challenges and market rotation away from growth stocks.