American semiconductor company Advanced Micro Devices has issued a strong revenue forecast, supported by rising demand for artificial intelligence chips and data-centre computing infrastructure. The announcement has strengthened investor confidence in the company’s ability to compete in the rapidly expanding AI market.

AMD expects fourth-quarter revenue to reach approximately $17 billion, exceeding analysts’ average expectations of $16.23 billion. The forecast follows stronger-than-expected third-quarter financial results.

The company reported that data-centre revenue increased by 97 per cent to a record $8.55 billion during the third quarter. The growth reflects increasing demand for processors and AI accelerators used by companies building large-scale computing infrastructure.

Chief Executive Officer Lisa Su also forecast that AMD’s overall revenue could grow by more than 80 per cent in 2027. She indicated that data-centre products are expected to contribute the majority of the company’s revenue and earnings growth.

AMD’s outlook has helped ease concerns that spending on artificial intelligence infrastructure could be slowing. The company is positioning itself as a major competitor to Nvidia, with its expanding chip portfolio targeting businesses investing heavily in AI computing.