AMD is down 9% after reporting earnings. Here's why

Core Viewpoint - Advanced Micro Devices (AMD) experienced a 9% drop in premarket trading due to a first-quarter revenue forecast that did not meet some analyst expectations [1][2] Group 1: Financial Performance - AMD reported fourth-quarter revenue of $10.27 billion, exceeding LSEG consensus estimates of $9.67 billion [1] - The company anticipates first-quarter revenue of $9.8 billion, with a variance of plus or minus $300 million, compared to expectations of $9.38 billion [2] Group 2: Market Context - Analysts had expected AMD to provide stronger guidance for the first quarter, driven by a surge in spending on processors for AI applications [2] - AMD, alongside Nvidia, is a key manufacturer of AI chips and has seen its stock price increase by over 100% in the past year due to rising demand [2]