AMD slides on muted forecast for AI processors

Major player: The entrance to AMD’s headquarters in Santa Clara, California. The company is seen as a leading contender to challenge Nvidia in the market for accelerators, which help develop chatbots and other tools. — Bloomberg

NEW YORK: Advanced Micro Devices Inc (AMD) shares declined as much as 9.1% in extended trading after the chipmaker gave a disappointing forecast for artificial intelligence (AI) processors, a lucrative market now dominated by Nvidia Corp.

The company projected that its MI300 lineup, a family of so-called AI accelerators, would generate about US$4bil in revenue this year. Though that’s up from an earlier prediction of US$3.5bil, some investors were hoping for as much as US$8bil, according to analysts.