businessLIVE
AMD Shares Jump 7% as Third-Quarter Revenue Beats Expectations on AI Chips
AMD shares rise 7% as third-quarter revenue beats expectations on demand for AI chips.
Key points
- Third-quarter revenue was $13.38 billion, compared with $13.09 billion expected by LSEG consensus.
- The data center unit accounted for 64% of AMD's overall revenue, up from 47% a year earlier.
- AMD expects fourth-quarter revenue of about $17 billion, versus a $16.2 billion average analyst estimate.
Why it matters. The strong data center growth may support AMD's push into AI computing, though the source notes the stock had fallen 29% on Friday over concerns about weak guidance.
Advanced Micro Devices stock rose 7% in extended trading after the chipmaker reported third-quarter results on Tuesday that beat Wall Street forecasts. Revenue rose 45% to $13.38 billion, above the $13.09 billion expected, and adjusted earnings per share of $2.09 topped the $1.95 estimate, according to LSEG. Data center sales nearly doubled, and the fourth-quarter revenue outlook of about $17 billion beats the $16.2 billion analyst average.
Latest updates
AMD Shares Jump 7% as Third-Quarter Revenue Beats Expectations on AI Chips
Advanced Micro Devices reported third-quarter earnings on Tuesday that beat Wall Street's expectations. Revenue rose 45% from a year earlier. Data center sales nearly doubled over the same period, driven by booming demand for AI chips. The results lifted AMD's stock about 7% in after-hours trading. Chief executive Lisa Su has led the company's push into AI accelerators. The strong data center growth suggests continued demand for the company's chips from cloud and AI customers.