Updated
Updated · CNBC · Nov 3
AMD Jumps 7% After Q3 Revenue Hits $13.38 Billion as Data Center Sales Nearly Double
Updated
Updated · CNBC · Nov 3

AMD Jumps 7% After Q3 Revenue Hits $13.38 Billion as Data Center Sales Nearly Double

3 articles · Updated · CNBC · Nov 3

Summary

  • AMD rose 7% in extended trading after posting adjusted EPS of $2.09 on $13.38 billion in third-quarter revenue, beating LSEG estimates of $1.95 and $13.09 billion.
  • 45% revenue growth was driven mainly by data center sales, which nearly doubled and grew to 64% of total revenue from 47% a year earlier.
  • AMD forecast about $17 billion in fourth-quarter revenue, topping the $16.2 billion analyst consensus, while guiding gross margin to 55%, just below the 55.3% StreetAccount estimate.
  • Weakness persisted outside AI infrastructure: revenue in AMD's client-and-gaming segment fell 8% to $3.7 billion, with gaming revenue down 40% amid a soft PC market.
  • The results strengthen AMD's case as a broader AI challenger to Nvidia and contrast with Intel, whose shares sank last week despite strong data center growth because of weak guidance and demand concerns.

Insights

Can AMD's highly anticipated Helios systems and new AI chips actually dethrone Nvidia, or is their profit margin hitting a ceiling?
With data centers now dominating AMD's revenue, will their struggling gaming and PC segments be entirely abandoned in the near future?