Data center sales frenzy still needs several months, AMD stock price falls.

AMD is expected on Tuesday to report a slight decline in first-quarter revenue, despite an unexpected boost in sales of artificial intelligence chips in China. This has raised concerns about the company's ability to effectively challenge Nvidia in the booming AI market. During a call with investors, AMD CEO Lisa Su reiterated that the company expects sales of new flagship AI servers for OpenAI and other companies to rise rapidly in the second half of the year, and stated that global memory chip shortages will not slow down their plans. "I don't think our growth will be constrained by supply," Su said. Nevertheless, these sales have exceeded the company's forecast for the current first quarter, meaning that other chips, such as central processors, will have to bear the brunt of sales growth in the coming months. The stock price fell by 7% in after-hours trading. TECHnalysis Research President Bob O'Donnell said, "The market's expectations of a widespread explosion of AI-related hardware companies in the first quarter have distorted market expectations." During the call, Su also mentioned that AMD is collaborating with customers outside of OpenAI on their new AI servers.