AMD forecasts quarterly revenue above expectations as AI chip demand stays strong

Advanced Micro Devices forecast second-quarter revenue above Wall Street expectations on Tuesday, helped by keen demand for its data-center chips as cloud computing companies accelerate spending on artificial-intelligence infrastructure.

Shares of the company jumped roughly 5% in extended trading after surging about 60% so far this year.

AMD is seen by analysts and investors as a leading challenger to Nvidia’s dominance in AI chips, commonly referred to as graphics processing units or GPUs.