Chip manufacturer AMD's stock price fell after hours, as the revenue outlook the company announced earlier was below analysts' expectations, indicating that its artificial intelligence sales growth was lower than some people's expectations.

The company said on Tuesday that it expects fourth-quarter revenue to be around $7.5 billion. Analysts' average estimate was $7.55 billion. Although AMD currently expects sales revenue from the so-called AI accelerators to exceed $5 billion this year, higher than the previously expected $4.5 billion, some analysts and investors were originally expecting higher growth.

AMD is catching up with nvidia in the lucrative AI computing chip market. AMD has currently generated billions of dollars in revenue from such products, rapidly increasing from a year ago, but still far below the hundreds of billions in revenue generated by its competitors.

AMD's stock price fell about 7% after hours on Tuesday. The stock has risen 13% year-to-date, closing at $166.25.

AMD's third-quarter revenue increased by 18% to $6.82 billion, above the estimated median of $6.71 billion. Adjusted earnings per share were $0.92, meeting expectations.

AMD's new MI300 accelerator product has become one of the company's largest sales engines. However, growth is hindered by supply constraints. Like most companies in the industry, AMD no longer owns its own factories and instead chooses to outsource manufacturing to taiwan semiconductor.