AMD beats Q3 estimates on top and bottom line, offers strong Q4 guidance
Advanced Micro Devices (AMD) Announced its 3rd quarter profit Data released after the bell on Tuesday beat analysts’ earnings and revenue expectations and provided strong guidance for the fourth quarter.
The company said it forecast revenue of $9.3 billion to $9.9 billion. Wall Street was expecting revenue of $9.21 billion.
AMD shares rose nearly 1% following the news.
“We had an outstanding quarter with record revenue and profitability, reflecting broad-based demand for our high-performance EPYC and Ryzen processors and Instinct AI accelerators,” AMD CEO Lisa Su said in a statement.
“Our record third quarter performance and strong fourth quarter guidance mean we have taken a clear step forward in our growth trajectory as our expanding compute franchise and rapidly scaling data center AI business deliver significant revenue and earnings growth,” he added.
AMD had earnings of $1.20 per share and revenue of $9.25 billion for the quarter. Analysts expected earnings per share of 1.17 on revenue of $8.74 billion, according to Bloomberg consensus estimates.
AMD’s data center revenue reached $4.3 billion. Analysts were expecting $4.1 billion. The company earned $3.5 billion in revenue in the same quarter last year.
AMD’s customer segment, which includes laptop and desktop chip sales, generated $2.9 billion in revenue against expectations of $2.6 billion.
AMD’s gaming division generated $1.3 billion in revenue. Analysts were looking for $1.1 billion.
AMD’s report comes after the company announced a pair of major AI chip deals with companies like OpenAI (OPAI.PVT) and Oracle (ORCL).
Last month, AMD signed a deal to supply OpenAI with up to 6 gigawatts of graphics processing units (GPUs) to power its AI data centers. In return, OpenAI agreed to purchase more than 160 million AMD shares, equivalent to approximately 10% of the company.
Under its agreement with Oracle, AMD will deploy up to 50,000 GPUs to the cloud company’s data centers.
AMD also provides chips to power two Department of Energy supercomputers at Oak Ridge National Laboratory. Systems Represents $1 billion in public and private investment when completed.
These moves caused AMD shares to skyrocket 53% last month. As of Tuesday, shares are up 108% year-to-date and 79% in the past 12 months.
But AMD is still behind Nvidia (NVDA), which owns the majority of the AI market and recently saw its market cap surpass $5 trillion. AMD’s market value is $418 billion.
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OpenAI and Oracle will begin deploying AMD’s next-generation MI450 GPU series and rack-scale platforms in the second half of 2026. Rack-scale offerings allow chips to be deployed into large collections of servers that will operate as massive computing systems.
