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.
