AMD stock tumbles as weak Q1 forecast raises concerns on AI momentum

Shares of Advanced Micro Devices AMD.O fall 7.2% in premarket trading

Chipmaker, late on Tuesday, forecast a sequential drop in quarterly revenue, denting confidence in its AI growth trajectory compared with rival Nvidia

Co expects first-quarter revenue at about $9.8 billion (+/– $300 million), slightly above consensus but down from $10.27 billion in Q4, signaling slower near-term momentum

In Q4, AMD saw a boost from sales of China-bound AI chips after the U.S. approved a license to ship these orders

Analysts at RBC Capital Markets said AMD's outlook was largely as expected but partly helped by China AI revenue

AMD faces limited near-term catalysts until OpenAI volumes ramp in late 2026 - RBC analysts

CEO Lisa Su said demand for next-generation AI servers is set to accelerate in the second half, adding memory shortages would not constrain production

YTD, AMD is up 13%