AMD shares fall after weaker Q1 sales outlook

The news: Advanced Micro Devices shares tumbled in extended trading after issuing a weaker-than-expected sales outlook for the first quarter.

Shares fell 5.97% to USD227.16 at 9:13am AEDT.

The context: The company forecast first-quarter revenue to be about USD9.8 billion ($13.95 billion). While this was above the Bloomberg consensus estimate of USD9.39 billion, some analysts had expected revenue to top USD10 billion.

The weaker-than-some-expected outlook sparked investors' disappointment who had been anticipating a larger payoff from AI computing spending. The chipmaker said an advanced chip design scheduled for release in the second half of the year is expected to improve its competitive position.