It's pullback time for chip stocks. The share price of AMD plunged after it offered a first quarter forecast that fell short of market expectations. AMD makes graphics processing units, or GPUs, which are needed to train and deploy generative artificial intelligence models. But the Artificial Intelligence market is still currently dominated by Nvidia, and it does not look like AMD can take over Nvidia any time soon. The stock market is forward looking. AMD has to edge up its competitiveness in order to lead in the chips market.
AMD Plunge: Chip Stocks Start to Pull Back?
AMD fell 10% in after-hours trading.
While AMD's fourth-quarter financial report exceeded analysts' revenue expectations, the guidance for the first quarter fell short of expectations.
Affected by AMD's earnings, other semiconductor stocks also fell in the after hour trading.
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