By Arsheeya Bajwa and Stephen Nellis Feb 3 (Reuters) - Advanced Micro Devices on Tuesday forecast a slight decline in quarterly revenue, raising concerns about whether it can effectively challenge Nvidia in the booming AI market and sending its shares tumbling 8% in after-hours trade.

Although Broadcom and Advanced Micro Devices are formidable threats to the world's largest publicly traded company, its top concern comes from within.

The CEO said that the data center business has risen from the fourth to first quarter and demand for the company's CPUs is "going gangbusters."

Inc, the main challenger to Nvidia Corp in the market for artificial intelligence processors, gave a disappointing forecast for the current period, a sign it's not making the kind of artificial intelligence (A)I inroads that some investors anticipated.

Nvidia actually has a solid case to double in 2026.

Five months after OpenAI and Nvidia announced a $100 billion deal, no contract has been signed and no money has changed hands.

Most semiconductor companies followed AMD higher during Monday trading. The Philadelphia Semiconductor Index ( SOX) was up 2%. Taiwan Semiconductor Manufacturing ( TSM) had increased 3%, while Intel ( INTC) had jumped 5%.