AMD Stock Slides as Profits Fall Short of Expectations [Video]

Advanced Micro Devices (AMD) reported third-quarter earnings that missed expectations, sending shares lower after the closing bell Tuesday.

The chipmaker’s third-quarter revenue grew 18% year-over-year to $6.82 billion, ahead of the Visible Alpha analyst consensus. Net income at $771 million or 47 cents per share was up from $299 million or 18 cents per share a year earlier, but below Street estimates as costs rose.

AMD’s revenue gains came as data center sales more than doubled to a fresh high of $3.5 billion, driven by demand for the company’s artificial intelligence (AI) chips.

The results come after AMD launched its next generation of AI chips at its Advancing AI event earlier this month, but did not raise its AI sales outlook or announce new customers as many investors had hoped, weighing on its stock price.

AMD said Tuesday it expects fourth-quarter revenue to land between $7.2 billion and $7.8 billion, up from $6.2 billion in …