AMD beats revenue forecasts as data-center growth accelerates

AMD forecast fourth-quarter revenue above Wall Street estimates on Tuesday, driven by strong demand for its AI chips as it challenges Nvidia's market dominance, sending shares up over 8% in extended trading. The company's data-center revenue nearly doubled in the third quarter to a record $8.55 billion, beating estimates, as AI workloads shift toward real-world applications. AMD expects about $17 billion in fourth-quarter revenue, above the $16.23 billion analysts predicted. AMD has expanded beyond standalone chips to compete with Nvidia's rack-scale systems, including a February deal to sell up to $60 billion in AI chips to Meta. The industry also faces a global memory shortage affecting high-bandwidth supply.