AMD Revenue Outlook Beats Expectations on Strong AI Chip Demand

As Nvidia's main challenger in the AI chip sector, AMD issued a revenue forecast that exceeded analysts' expectations, indicating that demand for data center processors remains strong. AMD said in a statement on Tuesday that it expects fourth-quarter revenue of $17 billion, plus or minus 3%. By comparison, the average analyst estimate was $16.3 billion. The latest outlook further demonstrates the durability of AI spending and may help ease investors' nerves. In recent weeks, shares of chipmakers and other technology companies have been hit hard amid market concerns that a bubble exists in the AI infrastructure industry. Under the leadership of CEO Lisa Su, AMD has become one of the most important suppliers of processors and computing equipment, underpinning a large number of emerging AI services. AMD Chief Financial Officer Jean Hu said in the statement: "Our fourth-quarter outlook reflects accelerating revenue and profit growth, driven by strong demand across our data center product portfolio." After the earnings release, AMD shares rose about 6% in after-hours trading. Even after recent volatility, the stock is still up more than twofold year to date. The company's market value reached $1 trillion in September, placing it among the few companies to reach that scale.