AMD Forecasts Q1 Revenue Exceeding Estimates: $9.8B Projections on AI Chip Demand

[Para 1: The Lead] AMD, a leading semiconductor company, forecasts its first-quarter revenue to surpass market estimates, projecting $9.8 billion, ±$300 million, against analysts' average forecast of $9.39 billion. This is driven by robust demand for AI chips amid data center capacity expansions. [Para 2-3: Supporting details & Context] Shares of AMD declined over 4% in after-hours trading. The company attributes its revenue forecast to the growing demand for AI chips, positioning it as a formidable competitor to Nvidia. AMD, based in Santa Clara, California, is a major provider of data center CPUs, benefiting from Intel's supply constraints. While memory chip shortages and price hikes pose challenges, AMD's reliance on TSMC for chip manufacturing mitigates some supply issues. However, HSBC analysts warn that tight memory supply could impact AI industry growth and PC sales, despite strong demand.