AMD's Shares Tumble Amid AI Uncertainties

AMD shares dropped nearly 7% in premarket trading due to weak quarterly sales and AI-related investor concerns. Despite a better-than-expected revenue forecast, analysts warned about AMD's limited AI customer base. Rival chipmakers like Nvidia and Broadcom also saw declines, reflecting broader market apprehensions about AI advancements.

AMD shares experienced a nearly 7% decline in premarket trading on Wednesday, following a lackluster quarterly sales forecast. The dip reignites investor concerns over AMD's ability to compete with AI chip leader Nvidia.

This slump coincides with a wider sell-off in global software stocks, prompted by fears that AI could replace software tools. Market jitters were further fueled by a chatbot release from AI developer Anthropic, raising questions about the productivity of AI tools and growing skepticism among investors about Big Tech's AI spending.

Nvidia shares fell 0.6%, and Broadcom slid 1.24%. Despite AMD's shares doubling in 2025, analysts noted its AI gains depend on a limited customer base. Meanwhile, Super Micro Computer's shares surged after raising revenue forecasts, indicating strong demand for AI-optimized servers and infrastructure.

(With inputs from agencies.)