Chipmaker AMD saw a 9% drop in premarket trading after its first-quarter forecast missed analyst expectations. Despite reporting $10.27 billion in Q4 revenue, beating estimates, the company’s Q1 revenue guidance of $9.8 billion fell short. AMD’s stock surged over 100% in the past year due to high demand for AI chips.

Susquehanna’s Chris Rolland noted that AMD unexpectedly shipped Chinese revenue in Q4, impacting the beat. However, strong demand for AMD’s chips in data centers remains, with potential multi-gigawatt contracts on the horizon. The chipmaker struck a deal with OpenAI for the deployment of 6 gigawatts of Instinct GPUs, and Oracle plans to deploy 50,000 AMD AI chips starting later this year.

Read more at CNBC: AMD is down 9% after reporting earnings. Here’s why