AMD reports net loss in March quarter, issues below-par guidance - shares fall in extended trading

The biggest decline came in AMD’s client group, which includes sales from PC processors. That segment reported $739 million in sales, a 65 percent drop from the $2.1 billion sales reported during the same period last year.

CEO Lisa Su said in a statement that the company sees “growth in the second half of the year as the PC and server markets strengthen.”

"We remain confident in our ability to grow in the second half of the year," she said.

Part of that growth, Su said, will come from a chip called the MI300, which will compete with NVIDIA Corp.'s flagship chips for artificial intelligence. Su said customer interest in the chip is growing.

AMD forecast current-quarter revenue of about $5.3 billion, plus or minus $300 million. Analysts polled by Refinitiv were expecting revenue of $5.48 billion.

"I think AMD's days of taking large swaths of share will likely be over, and it will probably see a more aggressive market for data center competing with Intel," said Anshel Sag, analyst at Moor Insights & Strategy. "AMD has great products in data center, but Intel still has a lot of customers who are still using Intel and deep (customer) relationships."

NVIDIA has the bulk of the AI market, and analysts believe it has a strong hold on its position.

AMD shares ended 7 percent lower in after-hours trading.