AMD expects fourth-quarter revenue of about $17 billion, beating analyst estimates as data-center growth accelerates. The company’s revenue rose 45% in the third quarter, driven by strong demand for AI chips. Chief analyst Bob O'Donnell said, "The AMD numbers provide a greatly needed boost both for AI infrastructure."

Shares of the company jumped over 8% in extended trading. The stock has more than doubled so far this year. Intel shares rose 2%, Nvidia stock climbed ​over 1% and Broadcom also advanced 1.2%.

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AMD, which nearly doubled its data-center revenue in the third ​quarter, is benefiting as a shift in AI workloads toward running models in real-world applications ⁠drives demand for its graphics processing units and central processors.

"The AMD numbers ​provide a greatly needed boost both for AI infrastructure and even, to a smaller degree, the PC market," chief analyst at TECHnalysis Research Bob O'Donnell said.

AMD expects fourth-quarter revenue of about $17 billion, plus or minus 3%, above analysts' average estimate of $16.23 billion, according ​to data compiled by LSEG.

The company's adjusted gross margin is expected to be about 55%, in line with ​estimates of 55.27% and down from 56% in the third quarter.

AMD has stepped up AI product rollouts, moving beyond standalone chips ‌to ⁠compete with Nvidia's rack-scale systems.

In February, the company agreed to sell up to $60 billion worth of AI chips to Meta over five years in ​a deal that allows ​the Facebook owner to ⁠purchase as much as 10% of the chip firm.

AMD's third-quarter revenue rose 45% to $13.38 billion, beating estimates of $13.09 billion. Data-center revenue jumped 97% to a record $8.55 billion, exceeding ​estimates of $8.20 billion.

The semiconductor ​industry is also ⁠grappling with a global memory shortage, leaving expensive high-bandwidth memory used in AI processors in scarce supply as manufacturers race to increase production.

Third-quarter sales in AMD's client and gaming segment, home to its PC chips and console processors, fell ⁠8% to $3.72 ​billion, missing estimates of $3.79 billion.

Beyond chips, AMD in September agreed to ​buy Fei-Fei Li's World Labs, a startup building AI that models 3D environments, for $8.2 billion in stock, gaining a foothold in research on ​physical AI systems.

Reporting by Anhata Rooprai in Bengaluru and Max A. Cherney in San Francisco; Editing by Sriraj Kalluvila