S hares of Advanced Micro Devices (NASDAQ: AMD) were heading lower today after the chipmaker posted disappointing results and guidance in its first-quarter earnings report. As of 2:44 p.m. ET, the stock was down 7.3% after falling as much as 10% earlier in the session.

Advanced Micro Devices and Super Micro Computer led a selloff in chip stocks on Wednesday after their earnings disappointed investors who had piled into the sector on optimism about AI.AMD slumped nearly 10% and was on course to lose more than $21 billion in market value.

Advanced Micro Devices, Inc (NASDAQ: AMD) was trading flat Tuesday ahead of its first-quarter earnings print set to take place after the market closes.

John Ballard has positions in Advanced Micro Devices and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy. Invest better with The Motley Fool. Get stock recommendations ...

Shares of Advanced Micro Devices and Super Micro Computer sank on Wednesday, sparking a selloff in chip stocks, after their earnings disappointed investors who have piled into the sector on hopes rising AI investments would boost demand.

Advanced Micro Devices stock has seen significant gains in the recent past, but fundamentals have failed to keep pace. Find out why AMD stock is a Sell.

AMD is already doing business with Meta and Microsoft, which are buying the MI300 chips as an Nvidia alternative. Even if Nvidia remains the runaway leader, that's fine. AMD can do very well as a notable competitor.