AMD, a semiconductor company emphasizing AI accelerators and data center technologies, fell about 12% this week after delivering quarterly results that beat expectations but offered a revenue forecast that tempered some investors’ hopes for even faster AI growth.

The quarter’s strong sales and profit highlighted ongoing demand for AI and data center products, but cautious company guidance and broader tech sector profit-taking led to a negative shift in investor sentiment.

Competitive dynamics and heightened expectations for future AI revenue growth contributed to the market’s reaction, even as the company underlined robust demand for its new products.