Chipmaker beats third-quarter earnings expectations, forecasts $17 billion in fourth-quarter revenue, and expands its competitive position against Nvidia in the artificial intelligence market.
Advanced Micro Devices (AMD) reported stronger-than-expected third-quarter financial results Tuesday, fueled by accelerating artificial intelligence demand and significant growth in its data center business.
The semiconductor giant generated quarterly revenue of $13.38 billion, representing a 45% increase from $9.25 billion a year earlier and exceeding Wall Street expectations of $13.09 billion, according to LSEG estimates.
Adjusted earnings per share reached $2.09, surpassing analyst projections of $1.95.
AMD’s data center division emerged as its primary growth driver, with revenue nearly doubling year over year and accounting for approximately 64% of total sales, compared with 47% during the previous year.
CEO Lisa Su expressed confidence in the company’s ability to meet accelerating demand for AI infrastructure, citing AMD’s expanding product portfolio and established supply chain relationships.
Looking ahead, AMD projects fourth-quarter revenue of approximately $17 billion, exceeding analyst expectations of $16.2 billion. The company anticipates gross margins of approximately 55%.
AMD continues strengthening its competitive position against Nvidia through its Helios rack-scale AI systems and advanced server processors. Major technology companies, including Meta, Microsoft, Oracle, OpenAI, and Anthropic, are beginning to deploy AMD’s infrastructure.
The company has also expanded its AI investments, including commitments of up to $5 billion in Anthropic and a proposed $8.2 billion acquisition of World Labs.
Despite strong data center performance, AMD’s PC and gaming segment experienced an 8% revenue decline to $3.7 billion, reflecting weaker consumer demand.
AMD shares jumped approximately 7% in extended trading following the announcement, adding to gains exceeding 125% year to date.
With AI infrastructure spending accelerating globally, AMD’s latest results highlight its growing role in powering next-generation artificial intelligence applications and enterprise computing.
