Total quarterly revenue advanced 45% year-over-year to $13.38 billion, with data center operations expanding rapidly to represent 64% of AMD's total business. While enterprise demand for CPUs, GPUs, and Helios rack-scale systems surged, consumer-facing units faltered, highlighted by a 40% decline in standalone gaming revenue. Management remains confident in long-term profitability and issued fourth-quarter revenue guidance of approximately $17 billion, comfortably surpassing market projections.
Key points
Strong enterprise adoption from tech leaders like Microsoft, Meta, and OpenAI is driving…: Strong enterprise adoption from tech leaders like Microsoft, Meta, and OpenAI is driving AMD's competitive push against Nvidia.
Fourth-quarter revenue guidance of roughly $17 billion indicates sustained momentum headi…: Fourth-quarter revenue guidance of roughly $17 billion indicates sustained momentum heading into the next fiscal period.
Strategic capital commitments include an $8.2 billion acquisition of World Labs and a $5…: Strategic capital commitments include an $8.2 billion acquisition of World Labs and a $5 billion investment in Anthropic.
Sources checked by our analysis pipeline: 1
Advanced Micro Devices reported third-quarter earnings on Tuesday that beat Wall Street's expectations, with revenue jump 45% and data center sales nearly doubling from a year earlier. The stock jumped 7% in extended trading.
Here's how the chipmaker did versus LSEG consensus estimates for the quarter:
- Earnings per share: $2.09 adjusted vs. $1.95 expected
- Revenue: $13.38 billion vs. $13.09 billion expected
Revenue increased from $9.25 billion a year earlier, AMD said in a statement.
CEO Lisa Su said in a press release that she expects growth in data center processors to "accelerate further," and that meeting demand won't be a problem.
"With our leadership product portfolio and deep customer and supply chain relationships, we are confident in our ability to sustain very strong revenue growth and expanding profitability over the coming years " Su said in a statement.
AMD's report comes days after Intel disclosed similar data center growth, with revenue in that segment up 78% in the third quarter. But the stock plummeted 29% on Friday over concerns about weak guidance and Intel's ability to meet demand.
The chipmaker's latest financial results demonstrate surging enterprise demand, powered primarily by an explosive doubling in its core server division. This outperformance alongside an upbeat forward guidance reassured investors about the company's competitive positioning and sustained momentum. Consequently, the upbeat quarterly release triggered an immediate positive rally for the stock in extended market sessions.
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LATAM Airlines has lowered its earnings outlook in response to rising fuel expenses. The carrier adjusted its financial forecast as higher fuel costs continue to impact its operating performance.