Key Takeaways
- Advanced Micro Devices posted record quarterly results that topped analysts’ estimates on strong sales of its data center chips.
- The chipmaker’s fourth-quarter outlook was also well above the analyst consensus.
Advanced Micro Devices (AMD) on Tuesday reported record quarterly results above analysts’ projections as booming demand for AI helped boost sales of its data center chips.
AMD posted adjusted earnings per share of $1.20 on revenue that jumped 36% year-over-year to a record $9.25 billion in the third quarter, well above analysts’ estimates compiled by Visible Alpha.
Sales in AMD’s data center segment—by far its largest—rose 22% year-over-year to $4.3 billion, slightly above expectations. The results did not include any revenue from shipments of AMD’s MI308 AI chip line to China, which AMD has said it would resume after ironing out a revenue-sharing agreement with the Trump administration.
CEO Lisa Su said the strong results mark “a clear step up in our growth trajectory as our expanding compute franchise and rapidly scaling data center AI business drive significant revenue and earnings growth.”
Why This Is Significant
AMD has faced growing expectations heading into Tuesday’s print to impress investors with strong revenue growth that would justify its stock gains this year amid worries about an AI bubble. The chipmaker’s solid showing for the third quarter could help it defend its recent momentum.
For the current quarter, AMD said it sees revenue between $9.3 billion and $9.9 billion, above the analyst consensus of $9.17 billion. That range doesn’t include any revenue from AMD MI308 shipments to China either, AMD said.
Shares of AMD slipped about 1% in extended trading following the release, after dropping close to 4% in Tuesday’s session amid broader declines as worries about an AI bubble weighed on tech stocks. The chipmaker’s stock has more than doubled in value this year.