According to the Wise Finance app, AMD (AMD.US) announced its third-quarter performance in post-market trading on Tuesday. The data shows that the company's Q3 revenue increased by 18% year-on-year to $6.82 billion, exceeding market expectations of $6.71 billion; adjusted earnings per share were $0.92, in line with market expectations.

By business division, AMD's datacenter revenue in the third quarter was $3.5 billion, more than doubled compared to the same period last year, slightly higher than market expectations. Personal computer chip revenue was $1.88 billion, a 29% year-on-year increase. Game revenue decreased by 69% year-on-year to $0.462 billion, below market expectations.

Looking ahead, the company expects fourth-quarter revenue to reach around $7.5 billion, with analysts' average expectation at $7.55 billion. Although the company currently expects sales of so-called Artificial Intelligence (AI) accelerators to exceed $5 billion this year, higher than the previous forecast of $4.5 billion, some analysts and investors have been expecting higher sales. AMD's projected fourth-quarter adjusted gross margin is slightly lower than market expectations.

AMD is catching up with Nvidia in the lucrative artificial intelligence computing chip market. The company is currently generating billions of dollars in revenue from such products, growing rapidly compared to a year ago, but still far below Nvidia's revenue of tens of billions of dollars.

AMD's newly launched MI300 accelerator product has become one of the company's largest sales engines, but supply shortages have hindered growth. Like most companies in the industry, AMD no longer has its own factories and instead chooses to outsource production to Taiwan Semiconductor.

Investors consider AMD's performance as an indicator of overall demand for ai-related hardware. Amazon's AWS and Microsoft invested heavily in this new computing infrastructure, disrupting the entire industry. Investors are concerned that ai services have not yet brought huge profits, which may make it more difficult for companies to prove that the cost of purchasing chips is justified.

AMD is nvidia's biggest competitor in the ai accelerator field, and the company also competes with nvidia in the graphics chip field used by computer gamers. AMD also engages in intense competition with intel in the personal computer and server processor sectors.

AMD provides custom processors for Microsoft and Sony's gaming consoles. Due to the impact of the current generation of gaming consoles nearing the end of their lifecycle, AMD's gaming division is experiencing weak sales.

As of the time of writing, AMD fell 7.44% in post-market trading, to $153.88.