Nvidia Corp. in the market for artificial intelligence computing. Though AMD’s overall revenue topped estimates — and it provided a solid forecast for the current period — the data center unit was seen as a weak spot.

The Santa Clara, Calif., chip maker posted a profit of $482 million compared with $667 million, a year earlier. For the current quarter, AMD guided for revenue between $6.8 billion and $7.4 billion.

AMD reported $3.9 billion in data center sales, which was up 69% on a dear-over-year basis. The company said the increase was due to sales both in its Instinct GPUs and its EPYC CPUs, which compete with Intel's processors. For the full year, AMD's data center division revenue increased 94% to $12.6 billion.

Advanced Micro Devices posted fourth-quarter revenue and adjusted earnings that beat expectations, but data center sales came up short.

Advanced Micro Devices failed to impress investors waiting for the chipmaker to gain ground against AI heavyweight Nvidia, even as its quarterly results and revenue outlook exceeded analyst estimates on Tuesday.

Despite a strong performance in its financial performance, AMD expects first-quarter data center sales that may fall short of expectations, raising doubts about AMD's competitiveness amid Nvidia's dominance in the AI GPU sector.