AMD announced revenue forecasts for the fourth quarter of around $7.5 billion, below analysts' expectations of $7.55 billion. Adjusted gross margin was also lower than expected, leading to a negative market reaction.

AMD, which outsources its production to TSMC, shares similar concerns to other technology companies about production control. However, the company is seeking to differentiate itself from NVIDIA by offering more open solutions, which could appeal to a wider customer base. AMD's ability to compete effectively in the AI space, particularly in data centres, is seen as a key factor in its future success.

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