AMD Shares Rise 7% Following Third-Quarter Earnings Beat Driven by Data Center Growth
Advanced Micro Devices (AMD) reported third-quarter financial results that exceeded Wall Street expectations, characterized by a 45% year-over-year revenue increase to $13.38 billion. The primary driver was the data center segment, which saw revenue nearly double and now accounts for 64% of AMD's total business. CEO Lisa Su expressed confidence in meeting accelerating demand for AI chips and predicted further acceleration in data center processor growth. Despite strong performance in the data center and AI sectors, AMD faced headwinds in its gaming and PC-related segments, with gaming revenue dropping 40%. However, the company provided optimistic fourth-quarter guidance, projecting approximately $17 billion in revenue. This beat comes as AMD continues to expand its footprint in the AI infrastructure market through products like Helios racks, which are being adopted by major tech firms including Meta and Oracle.
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Topics: AI chips data center revenue earnings beat semiconductors
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