Nvidia stock fell Wednesday after rival AI chipmaker Advanced Micro Devices disappointed investors with its tepid guidance. Semiconductor stocks overall took a bath following quarterly reports from AMD and Skyworks Solutions.

Late Tuesday, AMD matched Wall Street’s earnings target for the first quarter but sales were a tad light. Its sales outlook for the current quarter was roughly in line with estimates, but Wall Street was looking for a bigger boost from the company’s MI300 AI accelerator business.

“Our investment thesis is that the AI chip market will grow to an $80 billion market over the next five years and that AMD will capture up to 20% of that market — and we did not hear anything on the (AMD) call that moves us away from that thesis,” Lipacis said in a client note. Nvidia is likely to continue to lead the AI chip market, analysts says