AMD shares fall as forecast fails to impress, despite strong AI growth

AMD's stock price fell by 6.5% in premarket trading on Tuesday

AMD's stock price fell by 6.5% in premarket trading on Tuesday after the chipmaker released a disappointing quarterly forecast and reported in-line revenue for the first quarter.

The company said it expects revenue to be in the range of $5.3 billion to $5.6 billion in the second quarter

The company said it expects revenue to be in the range of $5.3 billion to $5.6 billion in the second quarter, below analysts' estimates of $5.7 billion.

AMD attributed the lower-than-expected forecast to the global macroeconomic environment

AMD attributed the lower-than-expected forecast to the global macroeconomic environment, including the ongoing COVID-19 pandemic and the war in Ukraine.

However, AMD said it continues to see strong demand for its products, particularly in the data center and gaming markets

However, AMD said it continues to see strong demand for its products, particularly in the data center and gaming markets.

The company's revenue for the first quarter was $5.3 billion

The company's revenue for the first quarter was $5.3 billion, in line with analysts' estimates.

AMD's net income for the quarter was $1.1 billion

AMD's net income for the quarter was $1.1 billion, up from $790 million in the same period last year.

The company's gross margin for the quarter was 48%

The company's gross margin for the quarter was 48%, up from 46% in the previous quarter.

AMD said it expects its gross margin to be in the range of 47% to 49% in the second quarter

AMD said it expects its gross margin to be in the range of 47% to 49% in the second quarter.

The company said it expects its operating expenses to be in the range of $1.4 billion to $1.5 billion in the second quarter

The company said it expects its operating expenses to be in the range of $1.4 billion to $1.5 billion in the second quarter.

AMD's stock price has fallen by about 30% since the beginning of the year

AMD's stock price has fallen by about 30% since the beginning of the year.

Analysts remain bullish on AMD's long-term prospects

Despite the recent decline in its stock price, analysts remain bullish on AMD's long-term prospects.

AMD is a leading provider of high-performance computing and graphics solutions

AMD is a leading provider of high-performance computing and graphics solutions for the data center, gaming, and consumer markets.

The company's products are used in a wide range of applications, including artificial intelligence, machine learning, and virtual reality

The company's products are used in a wide range of applications, including artificial intelligence, machine learning, and virtual reality.