Advanced Micro Devices Inc (NASDAQ: AMD) shares are trading higher in Wednesday's after-hours session in sympathy with shares of Nvidia Corp (NASDAQ: NVDA), which jumped 7% on fourth-quarter earnings.

• NVDA Q4 Revenue: $6.05 billion beat estimates of $6.01 billion

• NVDA Q4 EPS: $0.88 beat estimates of $0.81

Quarterly revenue was down 21% year-over-year, but full-year 2022 revenue stayed flat. Data center was up 11% year-over-year, while gaming was down 46%.

"AI is at an inflection point, setting up for broad adoption reaching into every industry. From startups to major enterprises, we are seeing accelerated interest in the versatility and capabilities of generative AI," said Jensen Huang, founder and CEO of Nvidia.

"We are set to help customers take advantage of breakthroughs in generative AI and large language models. Our new AI supercomputer, with H100 and its Transformer Engine and Quantum-2 networking fabric, is in full production. Gaming is recovering from the post-pandemic downturn, with gamers enthusiastically embracing the new Ada architecture GPUs with AI neural rendering," Huang added.

Related Link: Nvidia Stock Jumps Following Q4 Beat, Above-Consensus Guidance; CEO Touts AI Opportunity

View more earnings on AMD

Outlook: Nvidia sees first-quarter revenue of $6.5 billion, plus or minus 2%, versus estimates of $6.33 billion.

AMD and Nvidia are direct competitors in the chip space and often move in tandem. AMD reported its fourth-quarter results at the end of January. The company turned in a top and bottom-line beat but issued a weaker outlook.

Check This Out: Cathie Wood Adds $5.5M Of This Chip Stock Despite Bleak Outlook — Trims Roku Holdings

AMD Price Action: AMD shares are up 3.24% after hours at $79.10 at the time of publication, according to Benzinga Pro.

Photo: courtesy of AMD.

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