Advanced Micro Devices (AMD) announced its fourth-quarter revenue guidance matched market expectations.

This led to a 7% drop in AMD shares in extended trading.

AMD projects sales of approximately US$7.5 billion for the current quarter, in line with forecasts. This figure marks a year-over-year decline of 22% for the December quarter.

Despite this, data center revenue grew 122% year-over-year.

This growth was boosted by sales of AMD’s Instinct GPUs for AI. Additionally, a rise in data center sales expanded the gross margin to 54%.