chip maker Advanced Micro Devices (AMD) The company’s shares fell 9% in early premarket trading Wednesday after its first-quarter forecast fell short of some analysts’ expectations.

AMD reported fourth-quarter revenue of $10.27 billion on Tuesday, beating LSEG’s consensus estimate of $9.67 billion.

The company said it expected first-quarter revenue of $9.8 billion, plus or minus $300 million, compared with expectations of $9.38 billion. but Some analysts had predicted The chipmaker will provide stronger guidance for the first quarter as spending on processors needed for artificial intelligence continues to boom.

AMD vs. NVIDIA is one of the major makers of artificial intelligence chips, and its shares have soared more than 100% in the past year, driven by growing demand.

“First of all, expectations are very high,” Susquehanna’s Chris Rolland said on CNBC’s “Clock Overtime.”

“Secondly, they announced a surprise revenue surprise in China for the quarter. It’s not a street number, so when you think about that, the increase wasn’t nearly as large as we thought.”

However, he added that demand for AMD chips in data centers remains strong, with the company hinting at future contracts for thousands of megawatts.

chip maker sign agreement The startup could acquire a 10% stake in AMD through a partnership with OpenAI in October. OpenAI will deploy 6 gigawatts of AMD Instinct graphics processing units over the next few years, with an initial launch of a 1-gigawatt chip in the second half of 2026, the companies said.

Oracle Also announced in October Plans to deploy 50,000 AMD AI chips Starting later this year.