Advanced Micro Devices Inc., the main contender to Nvidia Corp. in the artificial intelligence chip market, failed to impress investors with its revenue forecast after an eye-popping rally sent expectations soaring.

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AMD has posted its Q3 2025 financial results, with its Gaming revenue soaring by a massive 181% thanks to 'strong demand' for Radeon GPUs.

Preliminary results from research firm Gartner show an 8% boost in worldwide third-quarter PC shipments. For the fourth quarter, AMD expects adjusted gross margin of 54%, compared with estimates of 54.5%. In the third quarter, it recorded an adjusted gross margin of 54%, which slightly topped estimates.

AMD (AMD) shares were active in extended trading on Tuesday after the semiconductor company reported third-quarter results. Read for more.

Advanced Micro Devices forecast fourth-quarter revenue above market estimates on Tuesday, betting on the multibillion-dollar expansions of data center infrastructure to boost demand for its artificial intelligence chips.

The chip maker reported steep gains in both profit and sales for the third quarter as it moved deeper into AI data centers and increased sales of personal computer processors.

In other words, it is possible to be more confident about the company's continued operational momentum for the rest of the year, as Dr. Lisa Su (AMD's CEO) mentioned in the earnings release: "Our record third quarter performance and strong fourth quarter guidance marks a clear step up in our growth trajectory as our expanding compute franchise and rapidly scaling data center AI business drive significant revenue and earnings growth.