(Bloomberg) — Advanced Micro Devices Inc. fell in late trading after the chipmaker’s revenue forecast fell short of analysts’ estimates, a sign that artificial intelligence sales are growing slower than some had expected.

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Sales will be about $7.5 billion in the fourth quarter, the company said Tuesday. Analysts on average estimated the value at $7.55 billion.

Although the company now expects to generate more than $5 billion in sales from so-called AI accelerators this year – up from a previous forecast of $4.5 billion – some analysts and investors had expected a larger increase calculated.

AMD gets Nvidia Corp. in the lucrative market for these chips, which help develop and operate AI services. The company now generates billions of dollars from these types of products – a rapid increase from last year – but the level remains well behind the tens of billions of dollars that its competitor rakes in.

In a conference call following the results, Chief Executive Officer Lisa Su dismissed concerns that AMD isn’t delivering enough growth. The company is ramping up production and gaining the trust of major data center companies that rely on AI accelerators, she said.

“What I will say is that customers are very, very receptive to AMD,” Su said. “And we see that everywhere we go. Everyone gives us a very fair chance to earn their business and that’s what we want to do.”

AMD shares fell more than 7% in late trading on Tuesday. They rose 13% this year to close at $166.25 in New York.

AMD’s third-quarter revenue rose 18% to $6.82 billion, beating the average estimate of $6.71 billion. Profit, net of certain items, rose to 92 cents per share, in line with forecasts.

AMD’s new MI300 accelerator products, which compete with Nvidia chips, have become one of the company’s biggest sales drivers. However, growth has been hampered by supply availability. Like most companies in the industry, AMD no longer owns its own factories and has instead opted to outsource production to Taiwan Semiconductor Manufacturing Co.

The company has made progress in getting more supply from its suppliers but still expects little room to meet demand if it exceeds current forecasts, Su said on the call.

“I think we expect the environment to remain tight, but we also have significant growth planned through 2025,” Su said. “We are pleased with our overall supply chain capability.”

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