AMD Shares Plunge Nearly 17% in Worst Loss in a Decade Amid AI Concerns

• AMD's stock dropped 17% to $200.19, marking its largest one-day decline since May 2017, despite a 13% gain earlier this year.
• The chipmaker's first-quarter sales forecast of $9.8 billion (with a $300 million margin of error) disappointed investors, who expected stronger AI breakthroughs.
• AMD reported $390 million in sales of older processors to China last quarter, which boosted revenue but hurt profit margins due to navigating trade regulations.
• CEO Lisa Su maintains an optimistic outlook, projecting AMD's AI revenue to reach tens of billions of dollars by 2027.
• The data center division, a key AI driver, saw a 39% increase to $5.38 billion, exceeding analyst estimates, while PC sales also rose 34% to $3.1 billion.