AMD forecast falls short of expectations and signals a slower pace of AI growth

Advanced Micro Devices Inc. gave weak sales guidance for the current period, sparking fears that artificial intelligence sales are growing slower than expected.

Sales will be about $7.5 billion in the fourth quarter, the company said Tuesday. Analysts an estimated average of $7.55 billion. AMD also forecast an adjusted gross margin – the percentage of sales remaining after production costs are deducted – that fell just short of forecasts.