AMD Report fourth quarter income That topped expectations, but the company’s first-quarter forecast was lower than some analysts expected amid a boom in artificial intelligence spending.

The stock fell more than 6% in after-hours trading on Tuesday.

Here’s how the chipmaker performed against LSEG’s consensus forecast for the quarter ending in December:

• Earnings per share: $1.53 vs. $1.32 estimate
• income: US$10.27 billion, expected US$9.67 billion

AMD said it expected first-quarter revenue of $9.8 billion, plus or minus $300 million, compared with expectations of $9.38 billion. However, some analysts expect AMD to provide stronger guidance as customers continue to increase spending on chips needed for artificial intelligence models.

Net profit climbed to $1.51 billion, or 92 cents a share, from $482 million, or 29 cents a share, a year earlier. AMD’s overall revenue increased 34% year over year.

AMD is one of two makers of large graphics processors for artificial intelligence, although it only occupies a small part of the market, which is currently dominated by Nvidia.

The chipmaker recently announced some big customers, including ChatGPT maker OpenAI and Oracle. AMD plans to launch a new integrated server-grade artificial intelligence system called Helios later this year. Shares have more than doubled over the past year.

Those sales came from the company’s data center segment, which had sales of $5.4 billion in the quarter, up 39% year over year. Growth was driven by the company’s central processing units and artificial intelligence GPUs, the company said.

AMD’s client and gaming division grew 37% year over year to $3.9 billion. The company said this was driven by demand for Ryzen processors in laptops and PCs, which saw an increase in market share compared to other processors Intel.

The company’s embedded business grew more slowly, growing 3% year over year to $950 million.

AMD faces questions about whether it can ship its artificial intelligence chips to China due to U.S. export controls. The company said on Tuesday that sales of its Instinct MI308 chips in China were $390 million in the fourth quarter.

watch: AMD CEO Lisa Su: AI active users are expected to exceed 5 billion in the next five years