US Stock Market Move | Q1 performance forecast below expectations, American company AMD (AMD.US) dropped more than 10% in pre-market trading.

On Wednesday, shares of AMD (AMD.US) fell more than 10% in pre-market trading, to $217. On the news front, AMD's sales in the fourth quarter increased by 34% to reach $10.3 billion, surpassing the average expectation of $9.7 billion. Adjusted earnings per share were $1.53, higher than the analyst's average estimate of $1.32. As a major beneficiary of AI spending, AMD's data center business revenue grew by 39% in the current quarter, reaching $5.38 billion, higher than the analyst's average forecast of $4.97 billion. Personal computer-related sales also increased by 34% to $3.1 billion, surpassing the average expectation of $2.89 billion. As a key challenger to NVIDIA Corporation (NVDA.US) in the artificial intelligence processor market, AMD's performance forecast for the current quarter disappointed the market, indicating that its progress in the AI field did not meet some investors' optimistic expectations. The company stated on Tuesday that it expects sales in the first quarter to be around $9.8 billion, with a fluctuation of $300 million. According to data, analysts' average estimate is $9.39 billion, but some forecasts have exceeded $10 billion.