Yuvraj Malik, Chavi Mehta

(Reuters] -Advanced Micro Devices Inc projected 2022 revenue higher than expectations on Tuesday. That drove the shares of the stock up 11% in trading after hours, due to strong demand for its chips in data center servers.

According to Chief Executive Officer Lisa Su, “Relatively to the growth of the various businesses, the growth is led by server.” She told analysts during a conference phone call that she said the “very strong” server business this year.

AMD’s forecast was strong and also pushed shares up for chipmakers Nvidia Corp (NASDAQ:) Corp (NASDAQ:) Inc.

Fourth quarter revenue was record for chip manufacturer, beating estimates as more chips were sold at higher prices.

AMD is expanding its market presence in the data center space to take advantage of cloud adoption. The company’s agile outsourcing model has also helped it gain market share away from competitors. Intel Corp (NASDAQ:).

Kinngai Chau, Summit Insights Group managing director and senior researcher for semiconductors, stated that AMD has clearly gained market share in both PC client end markets and the server/datacenter end markets against Intel. His comments also indicated that AMD still has a small market share in these markets.

After-hours trading saw shares rise in many chip companies, but Intel’s share price fell.

AMD launched a variety of products with notable performance improvements, including an update to its GPU lineup for cloud-based and high quality gaming. This has created a problem for Intel.

Su stated that inventories were “matched to the demand”, signaling that supply-chain problems may be decreasing. He added that substantial investments had been made by the company to expand its capacity.

AMD projects revenue of $21.5 billion for the entire year. That’s compared to analysts’ average estimate at $19.27 billion according to IBES data by Refinitiv.

California-based firm reported an adjusted revenue of $4.83 Billion for the fourth quarter, up from $4.53 Billion in estimates.

From $1.78billion last year, net income dropped to $974million. AMD’s share price was 92c per share after excluding items. This is higher than the 76cs estimate.