AMD Beats Estimates as Data Center Sales Nearly Double

Advanced Micro Devices reported third-quarter results on Tuesday that topped Wall Street expectations, with revenue rising 45% and data center sales nearly doubling year over year. The stock climbed 8% in extended trading.

The chipmaker posted adjusted earnings per share of $2.09 against an expected $1.95, and revenue of $13.38 billion versus the $13.09 billion consensus estimate, according to LSEG. Revenue stood at $9.25 billion a year earlier.

CEO Lisa Su said she expects growth in data center processors to "accelerate further" and that meeting demand will not be a problem. "With our leadership product portfolio and deep customer and supply chain relationships, we are confident in our ability to sustain very strong revenue growth and expanding profitability over the coming years," she said in a statement.

The data center unit now accounts for 64% of overall revenue, up from 47% a year ago. The report follows Intel's disclosure of similar data center growth, though Intel's stock fell 29% on Friday over concerns about weak guidance and its ability to meet demand.

AMD's server CPUs are seeing renewed demand tied to agentic AI apps such as Meta's Muse, which rely on virtual machines that can run for hours. AMD's stock is up about 125% this year.

PC chip sales, reported alongside gaming chips, fell 8% to $3.7 billion, with gaming revenue down 40%. For the fourth quarter, AMD expects about $17 billion in revenue, beating the $16.2 billion analyst estimate, with gross margin of 55%.

Source: CNBC