AMD Stock: AMD Shares Drop Over 16% but CEO Affirms AI Demand Surges - AMD, NASDAQ:AMD

[Para 1: The Lead] AMD's stock price plummeted over 16% today, February 04, 2026, amid market reaction to underwhelming earnings guidance. Despite the share price drop, AMD CEO Lisa Su confidently affirms that advanced chip demand is accelerating, driven by AI-related needs. [Para 2-3: Supporting details & Context] Su, in an interview with CNBC, emphasized that AI computing demand has significantly escalated over the past two to three months, outpacing supply capabilities. She stated that AI development is progressing at a pace far exceeding her original expectations. AMD's fourth-quarter earnings exceeded Wall Street estimates, but some analysts felt the guidance for the first quarter did not fully capture the rapid expansion of AI investment. AMD forecasts first-quarter revenue of approximately $9.8 billion, ±$0.3 billion, surpassing market expectations of $9.38 billion. Su also noted a strong growth trend in AMD's data center business, particularly in CPU demand, as enterprise customers rapidly expand their AI computing capacity to meet enterprise-level AI applications. With the introduction of the Helios integrated server-level AI system in the second half of the year, AMD anticipates a significant market shift.