AMD (AMD) will announce its third quarter results after the bell on Tuesday, as chip stocks stage a comeback after steep declines following Intel's (INTC) disappointing earnings last week.

AMD stock rose more than 4% in early trading on Tuesday.

While Intel reported better-than-anticipated Q3 results, it provided Q4 revenue estimates of between $15 billion and $16 billion, well below analysts' projections of $17 billion.

The news sent Intel stock plummeting nearly 29% .

The company blamed the outlook on a worse-than-anticipated decline in the PC market.

The industry is contending with two overlapping factors: difficult comparisons to last year, when Microsoft ended support for Windows 10, forcing enterprises to purchase newer Windows 11 systems, and the steady increase in PC prices, which is eating into demand.

While AMD generates the majority of its revenue via data center sales, a drop in PC demand would still hurt its bottom line.

For the third quarter, analysts anticipate AMD to report earnings per share of $1.97 on revenue of $13 billion, according to Bloomberg consensus estimates. The company saw EPS and revenue of $1.20 and $9.2 billion, respectively, in the same period last year.

AMD's Data Center arm is expected to see sales of $8.19 billion, an 88% increase from the $4.34 billion it reported last year.

Last month, the company announced its Helion reference design, a server rack designed to be outfitted with various configurations of AMD's CPUs and GPUs based on customers' needs.

The company's Client business revenue, which includes PC sales, is set to top $3.06 billion, up 11% year over year, but flat sequentially.

AMD's gaming business, however, could take a major hit, with Wall Street predicting a 49% revenue decline to $655 million.

The company's gaming division includes products ranging from PC graphics cards to custom silicon for game consoles. Both categories are facing higher prices due to the ongoing memory and storage shortage, depressing customer demand.

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