Shares of Advanced Micro Devices (NASDAQ: AMD) dropped over 17% after the company’s growth forecast fell short of expectations. Despite fourth-quarter revenue increasing by 34% to $10.3 billion, investors wanted more aggressive growth guidance. AMD’s success in selling chips led to a year-over-year revenue increase of over 30% for the first quarter.

CEO Lisa Su attributed the growth to rising demand for cloud services, AI, and new AI workflows. The company saw strong sales in data center, client, and gaming segments, with revenue rising by 37% to $3.9 billion in the client and gaming sector. Adjusted net income also rose by 42% to $2.5 billion.

Looking ahead, AMD guided for first-quarter revenue of $9.5 billion to $10.1 billion, causing some investors to take profits after the stock’s significant gains. Despite the recent drop, AMD’s stock had doubled in the past year. The Motley Fool Stock Advisor team did not include AMD in their list of 10 best stocks to buy, highlighting other investment opportunities for investors to consider.

The Motley Fool’s Stock Advisor has a track record of outperforming the S&P 500, with an average return of 906%. While AMD has shown strong growth, investors may want to explore other potential opportunities for higher returns in the future.

Read more at Nasdaq: Why AMD Stock Crashed Today