AMD forecast fourth-quarter revenue above Wall Street estimates on Tuesday, expecting about $17 billion, plus or minus 3 per cent, exceeding analysts' average estimate of $16.23 billion, driven by strong demand for its AI chips. The company's data-center revenue nearly doubled in the third quarter, jumping 97 per cent to a record $8.55 billion, as a shift in AI workloads towards running models in real-world applications increased demand for its GPUs and CPUs. AMD is capturing market share from rival Intel, which recently forecast quarterly revenue well below estimates. AMD's adjusted gross margin is expected to be about 55 per cent in Q4, down from 56 per cent in the third quarter. AMD has increased its AI product rollouts, moving beyond standalone chips to compete with Nvidia's rack-scale systems; its flagship Helios rack, combining the MI455X accelerator and new "Venice" server chips, is in production and set for a larger ramp-up in the fourth quarter, with initial systems being tested at Meta. In February, AMD agreed to sell up to $60 billion worth of AI chips to Meta over five years. In September, AMD agreed to acquire Fei-Fei Li's World Labs, a startup building AI that models 3D environments, in an $8.2 billion stock deal.