Advanced Micro Devices on Tuesday forecast fourth-quarter revenue slightly below estimates and raised its artificial intelligence chip sales forecast to $5 billion for 2025 — not enough to impress investors.

AMD stock fell nearly 7 percent in extended trading, erasing most of the 8 percent gain over the past three trading days and much of the more than 10 percent gained this year. Demand for AI chips from big tech companies including Microsoft and Meta has grown much faster than their supply from AMD and its biggest rival Nvidia, limiting chip companies’ ability to exploit the increase in orders.

AMD CEO Lisa Su said AI chip supplies will be limited next year.

Revenue from its data center business, which includes AI chips, jumped 122% to $3.5 billion. AMD still lags behind leader Nvidia, which controls about 80% of the AI ​​semiconductor market. Su raised the forecast for AI chips, which are included in the data center segment, by half a billion from the $4.5 billion estimated in July.

During the earnings call with analysts, Su also discussed Microsoft and Meta’s expansion in their use of the company’s AI chips. Microsoft and Oracle offer MI300X chip rentals as part of their cloud computing service. Analysts widely believe Nvidia will maintain its majority market share for the foreseeable future, thanks in part to its entire AI ecosystem that includes CUDA software and networking equipment.