AMD Q3 earnings report 2025
AMD CEO Lisa Su speaks at a Senate Commerce, Science and Transportation Committee hearing on May 8, 2025 in Washington. Leaders of some of the largest technology and artificial intelligence companies will go to Congress on Thursday with a wish list of the kind that would eliminate regulations that top executives say are hindering their companies’ growth and sending jobs to China by default.
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Advanced Micro Devices It reported third-quarter financial results that beat Wall Street expectations, but said its margin forecasts were in line with forecasts. The stock fell nearly 5% in extended trading.
Here is the company’s performance compared to the LSEG consensus:
- Earnings per share: $1.20 adjusted, expected $1.16
- Revenues: 9.25 billion dollars, while the expectation was 8.74 billion dollars
Revenues rose 36% in the third quarter of the fiscal year ended Sept. 27 compared to the previous year, according to a report. expression.
Net income rose to $1.24 billion, or 75 cents per share, from $771 million, or 47 cents per share, a year earlier.
AMD expects revenue of approximately $9.6 billion in the fourth quarter; This means 25% growth. This is above LSEG’s consensus of $9.15 billion. AMD projects adjusted gross margin for the quarter at 54.5%, meeting StreetAccount’s consensus of 54.5%.
AMD, which is trying to keep up with Nvidia in the artificial intelligence processors market, said the guidance does not include revenue from shipping Instinct MI308 chips to China. Executives said the same thing last quarter.
As of Tuesday’s close, AMD shares are up 107% so far this year, while the Nasdaq is up 21%.
Last month, AMD reached a deal with OpenAI that would see the AI startup take a 10% stake in the chip maker. Beginning with the launch of the first 1-gigawatt chips in the second half of next year, OpenAI will deploy 6 gigawatts of AMD’s Instinct graphics processing units over several years and across multiple generations of hardware, the companies said.
For years, OpenAI and other companies have relied on graphics chips. Nvidia for running large-scale AI models.
“We expect this partnership to significantly accelerate our data center AI business, with the potential to generate over $100 million in revenue over the next several years,” AMD CEO Lisa Su said on a conference call with analysts. he said. The AI business is on track to generate tens of billions of dollars in annual revenue by 2027, he said.
Also in October Seer announced his plans Deploy 50,000 AMD Instinct MI450 AI chips will be available in the cloud starting next year.
AMD’s data center business, which includes standard central processing units and GPUs for artificial intelligence, had revenue of $4.34 billion in the third quarter, up 22%. Analysts polled by StreetAccount were looking for $4.13 billion.
Customer revenue increased 46% to $2.75 billion, beating StreetAccount’s forecast of $2.61 billion. Revenue from games increased by 181% to $1.30 billion. StreetAccount’s consensus was $1.05 billion.
Microsoft And sony Su said they increased production of their respective Xbox and PlayStation video game consoles ahead of the holiday season, leading to an increase in AMD’s semi-custom chip revenue.
AmazonA major cloud customer of AMD, . Tuesday application He announced that he sold all 822,234 AMD shares as of September 30. Amazon created this position in the first quarter.
Executives will discuss the results with analysts in a conference call starting at 5 p.m. ET.
This is developing news. Please check back for updates.
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