"AMD's Quarterly Revenue Forecast Disappoints, AI Chip Demand Falters"

AMD forecasts strong demand for its AI chips as companies invest in processors for AI servers, with fourth-quarter data center segment revenue growing 38% to $2.3 billion. Despite projecting first-quarter revenue below Wall Street estimates, AMD expects its supply of AI chips for 2024 to exceed $2 billion. The company's fourth-quarter revenue slightly surpassed analysts' estimates at $6.17 billion, but shares fell approximately 3.5% in extended trading. AMD's forecast for the current quarter's revenue is $5.4 billion, with a gross margin of about 52% on an adjusted basis, as the market for programmable chips faces challenges due to weak end-market demand.