Nov 4 (Reuters) - Advanced Micro Devices ( AMD )

forecast fourth-quarter revenue above market estimates on

Tuesday, betting on the multibillion-dollar expansions of data

center infrastructure to boost demand for its artificial

intelligence chips.

The company expects revenue of about $9.6 billion for the

quarter, plus or minus $300 million, compared with analysts'

average estimate of $9.15 billion, according to data compiled by

LSEG.

AMD has been the recipient of many significant investments

in AI hardware alongside partners ranging from ChatGPT parent

OpenAI to the U.S. Department of Energy, with Wall Street

betting heavily on the potential of relentless spending on

advanced processors.

Its shares have more than doubled in value in this year,

with AMD's stock gains outpacing those of market leader Nvidia ( NVDA )

, even as the larger rival's market valuation scaled the

$5 trillion mark.

Fears of an AI bubble have lately rippled through Wall

Street and AMD's results are being closely watched.

AMD last month said it would supply AI chips to OpenAI in a

multi-year deal that would bring in tens of billions of dollars

in annual revenue and give the startup the option to buy up to

roughly 10% of the chipmaker.

The deal covers the deployment of hundreds of thousands of

AMD's graphics processing units (GPUs), roughly equivalent to

the energy needs of 5 million U.S. households, or about thrice

the amount of power produced by the Hoover Dam.

This has raised optimism around AMD's position in the

unrelenting race to build the fastest, most widely adopted AI

chips.

However, Nvidia's ( NVDA ) dominance of the lucrative GPU industry

and its dominant share of this market are still largely secure,

analysts say, even as AMD competes for a bigger piece of the AI

chip pie.