On Wednesday, the stock price of chip behemoth AMD took a substantial 17% nosedive. As per CNBC's analysis, this sharp decline was mainly due to AMD's first-quarter performance forecast failing to meet the lofty projections set by certain analysts. Although AMD's financial results for the fourth quarter, disclosed on Tuesday, revealed a revenue of $10.27 billion—exceeding consensus estimates—and projected first-quarter revenue to be approximately $9.8 billion (give or take $300 million), which was also above market expectations, some analysts still held the view that its performance forecast should have been more robust.

Over the past year, fueled by skyrocketing market demand, AMD's stock price has more than doubled, soaring by over 100%. This meteoric rise has made investors especially sensitive to any deviations from performance expectations. On February 4, the three major U.S. stock indices exhibited a mixed performance. The Dow Jones Industrial Average climbed by 0.5%, while the Nasdaq Composite Index took a 1.5% hit, and the S&P 500 Index experienced a slight dip of 0.5%.