AMD, a close rival to Nvidia, is intensifying efforts in the AI chip market, driven by the growing demand for chips used in data centers that power generative AI technologies like ChatGPT. While AMD's data center revenue grew over 100% in the September quarter, the personal computer and gaming units faced challenges, with gaming sales dropping 69%.

The company is investing heavily in AI chip production, which is expensive due to manufacturing constraints. Despite the surge in the data center segment, AMD's total revenue growth is expected to be more modest at 13%. Shares of AMD have fallen over 3% this year after a strong surge last year driven by investor optimism about AI returns.