(Reuters) -Advanced Micro Devices on Tuesday forecast fourth-quarter revenue just shy of estimates as supply chain constraints hamper its ability to meet strong demand for AI chips, while the PC market grows more slowly than some investors expected.
Shares of the Santa Clara, California-based company fell 5% in extended trading. The stock has risen about 10% so far this year.
Demand for AI chips from big technology companies including Microsoft and Meta has been rising much faster than their supply from AMD and larger rival Nvidia, limiting the chip companies’ ability to tap the order surge.
Capacity for the production of AI chips will be very tight going into 2025, the world’s largest contract chip manufacturer TSMC said in July, marking a significant hurdle for the supply of these advanced semiconductors.
The company expects revenue of $7.5 billion, plus or minus $300 million for the fourth quarter, compared with analysts’ average estimate of $7.54 billion, according to data compiled by LSEG.
The company reported revenue of $6.82 billion for the third quarter, compared with estimates of $6.71 billion.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Anil D’Silva)
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