AMD Q3 Results: Revenue Jumps 45% to $13.4 Billion on AI Chips
AMD Q3 results: revenue jumped 45% to a record $13.4 billion as data centre sales nearly doubled; the chipmaker guided Q4 revenue near $17 billion.
Advanced Micro Devices reported a 45% jump in third-quarter revenue to a record $13.4 billion on 3 November, as AMD Q3 results beat Wall Street forecasts on strong demand for its data centre chips.
The chipmaker forecast fourth-quarter revenue of about $17 billion, plus or minus 3%, which would mark growth of roughly 66% from a year earlier. Its shares rose about 8% in after-hours trading, according to CNBC, before giving back part of the gain as US election results came in.
Analysts had expected third-quarter revenue of $13.09 billion, according to LSEG data cited by CNBC. AMD posted adjusted earnings of $2.09 a share, up 74% from a year earlier.
AMD Q3 results: data centre business nearly doubles
The Data Center segment drove the quarter. Revenue there rose 97% to $8.5 billion, helped by EPYC server processors and the launch of the Instinct MI450 Series GPUs, the company said in a statement.
The Embedded segment grew 29% to $1.1 billion, while Client and Gaming revenue fell 8% to $3.7 billion as gaming sales dropped 40% to $773 million. Client revenue on its own rose 7% to $2.9 billion.
Profitability improved sharply. GAAP net income rose 95% to $2.4 billion, or $1.46 a share, while non-GAAP net income climbed 77% to $3.5 billion. Gross margin was 54% on a GAAP basis and 56% on a non-GAAP basis.
Operating performance told a similar story. The AMD Q3 results showed GAAP operating income up 123% to $2.8 billion, while non-GAAP operating income rose 75% to $3.9 billion.
“We delivered a record quarter with revenue exceeding the high end of our guidance,” Chair and CEO Lisa Su said. She added that AMD expects growth to accelerate further in the fourth quarter as it scales production of its Helios rack-scale systems and “Venice” processors.
Why AMD data center revenue matters for the AI trade
The results come days after a sharp sell-off in chip stocks last week. Intel shares plunged nearly 29% on a weak fourth-quarter outlook, with the company blaming a softer PC market.
AMD’s figures point to continued heavy spending on artificial intelligence infrastructure even as PC demand cools. Anthropic, Meta, Microsoft, OpenAI and Oracle Cloud Infrastructure are running models and workloads on the first Helios systems, AMD said.
Chief Financial Officer Jean Hu pointed to “the significant operating leverage in our business model” as the data centre unit scales. The company expects a non-GAAP gross margin of about 55% in the fourth quarter, slightly below the third-quarter level.
Deal activity in the sector has been brisk as well. Business ERA has reported that Marvell is set to buy Lumentum for $115 billion, a sign of how chip companies are seeking scale in AI networking and computing.
What comes next for AMD’s fourth-quarter outlook
AMD has agreed to acquire World Labs and Taalas, and recently released ROCm 10, the latest version of its AI software platform. HPE will deploy the first Helios systems built by HPE for cloud provider Vultr, while Oracle’s OCI Compute E7 instances will use sixth-generation EPYC processors.
The European high-performance computing body EuroHPC JU has also selected AMD’s MI430X GPUs for its LUMI-AI system, the company said. AMD also launched its Ryzen AI Halo platform and Threadripper Halo Station during the quarter.
Also Read: Amazon Q3 Results: AWS Grows 39% but Shares Slide After Hours
Investors will now watch whether AMD can deliver the steep ramp it has promised. The $17 billion target implies sequential growth of about 27% at the midpoint, and the full figures are in the company’s earnings release.
