The Globe and Mail reports in its Wednesday edition that Advanced Micro Devices forecast quarterly revenue above estimates on Tuesday, citing strong demand for its chips from massive data-centre capacity expansions to power artificial intelligence technologies. A Reuters dispatch to The Globe reports that its shares, however, fell more than 7 per cent in extended trading, suggesting investors were looking for an even stronger outlook after the stock more than doubled this year spurred on by AI optimism. "AMD is now in a similar position to Nvidia and the hyperscalers, where investors are looking for evidence that AI infrastructure investments will continue translating into accelerating returns," said Emarketer analyst Jacob Bourne. AMD is seen as Nvidia's closest rival in the graphics processing unit market as tech companies and governments increase AI spending. AMD has enhanced its AI product lineup, shifting from just selling chips to offering integrated AI systems that include processors and networking gear, enabling it to better compete with Nvidia's offerings. AMD expects third quarter revenue of about $13-billion (U.S.), plus or minus $300-million (U.S.), while analysts estimate $12.52-billion (U.S.).