AMD earnings beat forecasts as data‑center revenue almost doubles

AMD shares rose 8% in after‑hours trading after the chipmaker posted third‑quarter results that beat forecasts, with revenue up 45% year over year and data‑center sales almost double. Revenue reached $9.25 billion, up from the same quarter a year earlier. The data‑center unit now accounts for 64% of AMD’s total revenue, up from 47% a year ago. CEO Lisa Su said the company expects data‑center processor growth to accelerate further and that supply will meet demand. She added that AMD’s product portfolio and strong customer and supply‑chain ties give confidence in sustained revenue growth and higher profits. Intel reported a 78% jump in its data‑center revenue for the quarter but its stock fell 29% after weak guidance. AMD’s PC and gaming chip sales fell, with PC‑related revenue down 8% to $3.7 billion and gaming revenue down 40%. The firm forecasts fourth‑quarter revenue around $17 billion, slightly above the $16.2 billion analyst average, and expects a gross margin of about 55%. AMD also markets data‑center GPUs and Helios rack‑scale systems, used by Meta, Microsoft, Anthropic, OpenAI and Oracle. Meta recently activated Helios racks and AMD is investing $1 billion in Meta’s equity offering while committing up to $5 billion in Anthropic. In September AMD announced an $8.2 billion all‑stock acquisition of World Labs, an AI lab founded by Fei‑Fei Li. Su said the company will boost supply in 2027 after visits to Taiwan and meetings with TSMC, SK Hynix and Samsung.

Context

The surge in AI‑driven workloads is pushing data‑center demand for both CPUs and GPUs, putting AMD in direct competition with Nvidia and Intel. Strong growth in this segment can offset slower PC sales, which have been falling as component costs rise.