Advanced Micro Devices (AMD) reported a mixed financial performance in its first quarter, with a significant 80% growth in data center revenue driven by strong demand for AI capabilities, while facing a nearly 50% drop in gaming-chip sales. Despite beating Q1 revenue and EPS expectations, AMD's stock declined due to its future revenue guidance, which failed to meet Wall Street expectations. The company raised its 2024 forecast for AI data center GPU sales from $3.5 billion to $4 billion, yet this adjustment was deemed insufficient by the market, resulting in a 7% drop in stock price after hours. CEO Lisa Su highlighted the industry's robust demand for AI, which is creating a backlog due to supply constraints, particularly for the MI300X AI chip. AMD is set to report its Q1 earnings on Tuesday, with a projected second-quarter revenue of $5.7 billion. The stock fell by 3% due to the gaming chip sales drop and further declined by 7.5% after the earnings announcement.