AMD shares fall 6% as investors demand bigger AI payoff

Advanced Micro Devices shares tumbled on Wednesday as the chipmaker’s revenue forecast failed to impress investors seeking clearer signs that a multibillion-dollar AI spending ‌boom will ⁠translate ⁠into faster growth. Shares were last down 6.6% at $482.53, set to erase close to $59 billion from the ​company’s market value.

AMD’s stock was also hit by SpaceX’s CEO Elon Musk’s decision to build ​the company’s computing infrastructure exclusively with rival Nvidia’s chips. Shares of the AI bellwether gained 3.3% in early trading. AMD’s decline lays bare the elevated expectations ​from the company, which signed deals last month with ⁠Anthropic and ‌Core Scientific, to win high-profile customers and close the gap on ​Nvidia and ​Intel.