AMD is down 9% after reporting earnings. Here's why

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Chipmaker Advanced Micro Devices (AMD)

dropped 9% in early market premarket trading on Wednesday after its first-quarter forecast fell short of some analyst expectations.

AMD reported revenue of $10.27 billion for the fourth quarter that topped LSEG consensus estimates of $9.67 billion on Tuesday.

The company said it expects $9.8 billion in revenue for the first quarter, plus or minus $300 million, versus expectations of $9.38 billion. But some analysts had predicted the chipmaker would provide stronger guidance for the first-quarter amid an ongoing boom in spending for the processors needed to power AI.

AMD is down 9% after reporting earnings. Here's why

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