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 the data center segment, which saw revenue climb 97% to $8.5 billion as demand for AI chips and server processors accelerates. Management provided an optimistic long-term outlook, projecting revenue growth of over 80% in 2027. Despite strong earnings, AMD's free cash flow declined to $554 million due to a significant increase in inventory, which rose to $11.5 billion. The company is aggressively investing in capacity and stock to meet high demand for its Helios AI systems. While the surge in capital expenditure and inventory poses a potential risk if deployment timelines shift, management views these costs as necessary preparations for sustained future growth.
Tickers: $AMD
Topics: AI Chips AMD Earnings Data Center Revenue Revenue Growth Forecast