AMD Reports Record Third-Quarter Revenue Driven by Data Center Growth
Advanced Micro Devices (AMD) reported record third-quarter revenue of $13.4 billion, representing a 45% year-over-year increase. This growth was primarily fueled by its data center segment, which saw sales nearly double to $8.5 billion as demand for AI chips and server CPUs continues to surge. Following the report, AMD shares rose approximately 6.5% in after-hours trading. Despite the strong top-line performance, free cash flow declined to $554 million from previous levels due to a significant $3 billion increase in inventory buildup for upcoming Helios rack systems and Venice chips. Additionally, the company has increased its debt load since June. While management forecasts fourth-quarter revenue to reach approximately $17 billion—a 66% growth rate—investors are closely monitoring whether this heavy investment in inventory and infrastructure will successfully convert into liquid cash.
Topics: data center sales debt expansion free cash flow inventory increase revenue growth