The semiconductor company AMD is gaining ground in the NVIDIA-dominated AI chips market. In the past quarter, AMD achieved over one billion dollars in revenue with its MI300 processors. For the current year, AMD CEO Lisa Su is now forecasting AI chip revenues of 4.5 billion dollars, which represents an increase of 500 million dollars compared to previous expectations.

This positions AMD clearly as the number two in the market for chips for AI software development, although the gap to the industry leader NVIDIA remains significant. For instance, AMD achieved revenue of $2.8 billion in the data center segment last quarter, more than twice as much as the previous year. NVIDIA, on the other hand, recorded revenues of $22.6 billion in this segment.

Originally known as a rival to Intel in the PC processor business, AMD saw a 49 percent increase in revenue in this segment to 1.5 billion dollars. At the same time, revenue from chips for gaming consoles shrank by 59 percent to 648 million dollars.

The company-wide result was a nine percent increase in revenue to 5.8 billion dollars (approximately 5.4 billion euros). Net profit jumped from 27 million dollars in the previous year to 265 million dollars. These positive results caused the stock to rise by more than seven percent in after-hours NASDAQ trading on Tuesday.