AMD shares fall as analysts worry AI chip targets may be ambitious

The logo of semiconductor company Advanced Micro Devices Inc (AMD) is seen on a graphics processing unit (GPU) chip in this illustration picture taken February 17, 2023. REUTERS/Florence Lo/Illustration

(Reuters) - Advanced Micro Devices's shares fell about 6% on Wednesday as analysts raised concerns that the chip designer's targets for an artificial intelligence (AI) ramp-up may be too ambitious.

The fall came amid a broader sell-off in the tech sector that saw megacap stocks fall 1.5% to 5% and the Philadelphia SE Semiconductor Index drop 3.5%. Wall Street fell on Wednesday after rating agency Fitch downgraded the U.S. government's credit rating.