AMD shares shot up by 11 per cent in after-hours trading, as stellar demand for its chips used in data centre servers is expected to continue to drive growth.

Chief Executive Officer Lisa Su told analysts on a conference call, adding that the server business would be "very strong" this year and any growth would come from that area.

The chip designer posted a record fourth-quarter revenue, surpassing estimates, as it sold more high-end chips.

AMD has dived deeper into the data centre market to capitalise on cloud sales and its agile model of outsourced manufacturing has helped the company pry away market share from Intel. Summit Insight analyst Kinngai Chan said that AMD's market share in PC client and the server/datacenter was still relatively low compared to Intel, so Mozilla will probably not be losing much sleep over the news.

Su said supply problems were fading and inventory was "matched to demand" and added that the company had made significant investments to ensure ongoing capacity expansion.

For the full year, AMD forecast revenue of about $21.5 billion, compared with analysts' average estimate of $19.27 billion, according to IBES data from Refinitiv.

Adjusted fourth-quarter revenue of $4.83 billion, compared with estimates of $4.53 billion.

Net income fell to $974 million from $1.78 billion last year. Excluding items, AMD earned 92 cents per share, surpassing estimates of 76 cents.