AMD Q3 Revenue Rises 45% to $13.4 Billion as Data Center Sales Nearly Double

AMD reported third-quarter revenue of $13.4 billion on November 3, up 45% from a year earlier, as demand for its Instinct AI accelerators and EPYC server processors pushed data center sales up 97%.

The numbers

• Revenue: $13.38 billion, against a consensus of about $13.09 billion from LSEG, according to CNBC.
• Earnings per share: $1.46 on a GAAP basis and $2.09 non-GAAP, versus roughly $1.95 expected by analysts.
• Net income: $2.4 billion GAAP and $3.5 billion non-GAAP.
• Gross margin: 54% GAAP and 56% non-GAAP.

By segment

• Data Center: $8.5 billion, up 97% year over year.
• Client and Gaming: $3.7 billion, down 8%. Client revenue rose 7% to $2.9 billion, while gaming fell 40% to $773 million.
• Embedded: $1.1 billion, up 29%.

CEO Lisa Su said in the release that demand for the company's Instinct and EPYC products "continued to strengthen." CNBC reported that Meta, Microsoft, Anthropic, OpenAI and Oracle are beginning to use AMD's Helios rack-scale systems, and that Su expects to "substantially increase our supply in 2027."

Outlook

AMD guided fourth-quarter revenue to about $17 billion, plus or minus 3%, with a non-GAAP gross margin of roughly 55%. The midpoint implies growth of about 66% from a year earlier. CNBC put the average analyst estimate at $16.2 billion and noted the margin guidance sat slightly below the 55.3% analysts had expected.

Why it matters

The results show AMD's business shifting toward AI infrastructure: CNBC calculated that data center accounted for 64% of revenue, up from 47% a year earlier. The weakness in gaming and a softening PC market, which the outlet linked to rising memory and component costs, partly offset that growth.

According to CNBC, shares rose about 8% in extended trading before paring gains.