AMD forecasts strong demand for AI chips, shares slide

Chipmaker Advanced Micro Devices forecast first-quarter revenue below Wall Street estimates on Tuesday, but projected strong sales for its artificial intelligence (AI) processors.

As companies look to develop and operate their own generative AI applications, enterprise budgets are being funneled into processors used in AI servers.

Large and small businesses are looking for alternatives to the advanced AI chips produced by Nvidia, which commands roughly 80% market share. AMD has one of the few viable alternative products in the market.