AMD falls as dour forecast shows cracks in AI trade

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Shares of Advanced Micro Devices slid after the chipmaker issued a cautious quarterly sales outlook, reviving investor concerns about its ability to challenge AI leader Nvidia. AMD forecast first-quarter revenue of about $9.8 billion, slightly above expectations but down from the prior quarter, signaling uneven momentum in its AI-driven growth.

The reaction came amid broader market anxiety over artificial intelligence spending, as investors question whether massive outlays are translating into near-term productivity gains. While AMD benefited from a late boost in China-bound AI chip sales, analysts noted that without those deliveries its data center results would have fallen short.

AMD executives said demand for next-generation AI servers should accelerate in the second half of the year, including shipments to OpenAI. Still, the muted outlook contrasted sharply with upbeat signals from AI server makers, highlighting growing scrutiny over which companies can turn AI demand into sustained earnings growth.

US senators unveil bill to curb scam ads on social media platforms

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Two U.S. senators have introduced bipartisan legislation aimed at forcing social media platforms to take greater responsibility for fraudulent advertising. Senators Ruben Gallego and Bernie Moreno said the proposed Safeguarding Consumers from Advertising Misconduct Act, or SCAM Act, would require platforms to take “reasonable steps” to prevent scam ads or face enforcement by the Federal Trade Commission and state attorneys general.

The bill would mandate verification of advertisers’ identities or the legal existence of businesses, and require platforms to quickly review and act on reports of fraudulent ads. Supporters say social media companies have become a major conduit for online scams by relaxing advertiser checks to protect ad revenues.

The proposal follows a Reuters investigation that cited internal documents at Meta Platforms estimating that scam and illicit ads could account for a significant share of revenue. Meta has disputed those figures and said it actively combats fraud. The legislation is backed by the American Bankers Association and consumer groups such as AARP, and would allow state authorities to bring civil action against non-compliant platforms.

Uber forecasts profit below estimates on cheaper rides and higher taxes

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Uber Technologies forecast first-quarter profit below Wall Street expectations, citing higher taxes and a strategic push toward cheaper ride options designed to boost bookings. The outlook sent Uber shares sharply lower in premarket trading, as investors reacted to weaker earnings guidance despite strong demand.

Uber said it expects an adjusted effective tax rate of 22% to 25% this year, reflecting its operations across more than 70 countries. At the same time, the company has expanded lower-cost mobility products such as shared rides, which helped trips rise 22% in the fourth quarter but weighed on near-term margins.

The company projected first-quarter adjusted earnings per share of 65 to 72 cents, below analyst expectations, while gross bookings are forecast to exceed estimates. Uber said it is deliberately moderating margin expansion after proving its ability to generate profits, prioritising affordability to drive growth.

Uber also announced a chief financial officer transition and highlighted accounting changes in the UK that will reduce reported margins without affecting underlying profitability. Management said improving pricing conditions and lower insurance costs should support growth later in the year.