AMD shares plunge as forecast misses expectations

Despite AMD's good performance, its stock price fell more than 7% in after-hours trading in the U.S. due to its fourth-quarter financial forecast and the market's disappointment with its full-year AI chip sales forecast. AMD expects fourth-quarter revenue to be around $7.5 billion, up 22% year-on-year and 10% month-on-month, slightly lower than analysts' expectations of $7.55 billion. The gross margin is expected to be 54%, better than 51% in the same period of 2023, which is roughly in line with the market's figures.