Advanced Micro Devices (NASDAQ:) saw its shares plunge 3.6% following the market close on Tuesday after the chipmaking giant posted in-line earnings per share (EPS) for the fiscal Q1 2024.

Specifically, the company posted EPS of $0.62, meeting analyst estimates. Revenue for the quarter reached $5.5 billion, slightly surpassing the consensus estimate of $5.48 billion.

The non-GAAP gross margin for the quarter increased by 2 percentage points year-over-year to 52%.

Looking forward, AMD anticipates second-quarter 2024 revenue to range between $5.4 billion and $6 billion, compared to a consensus projection of $5.7 billion. The company estimates the midpoint of this range to reflect a year-over-year increase of about 6% and a sequential rise of roughly 4%.

AMD also expects its non-GAAP gross margin for the quarter to be about 53%.

“We delivered strong first quarter results with our Data Center and Client segments each growing more than 80% year-over-year driven by the ramp of MI300 AI accelerator shipments and the adoption of our Ryzen and EPYC processors,” said AMD Chair and CEO Dr. Lisa Su.

“This is an incredibly exciting time for the industry as widespread deployment of AI is driving demand for significantly more compute across a broad range of markets. We are executing very well as we ramp our data center business and enable AI capabilities across our product portfolio.”