AMD revenue hits 13.38 billion as data center sales surge

AMD generated 13.38 billion dollars in revenue during the third quarter, a 45 percent increase from the same period last year. This figure surpassed the LSEG consensus estimate of 13.09 billion dollars. The company’s adjusted earnings per share reached 2.09 dollars, beating the projected 1.95 dollars. Following the release of these results on Tuesday, AMD shares climbed 7 percent during extended trading.

The data center division now represents 64 percent of AMD’s total revenue, up from 47 percent in the previous year. CEO Lisa Su stated in a press release that the company anticipates further acceleration in data center processor growth. She cited the strength of the product portfolio and established relationships with customers and the supply chain as factors supporting sustained revenue growth and expanding profitability.

Rising demand for agentic AI applications is fueling this growth. These applications, such as Meta’s Muse, require CPUs capable of powering virtual machines and operating autonomously over long periods. This demand helped push AMD shares to a record high in October. However, the stock lost value for three consecutive days before Tuesday’s rally, reflecting wider industry worries about AI spending.

Intel reported similar trends in its own results, with data center revenue up 78 percent. Despite the growth, Intel’s stock fell 29 percent on Friday due to concerns about weak guidance and production capacity. Both chipmakers face a challenging personal computer market. Global PC shipments dropped 4 percent in the second quarter compared to the prior year, according to Counterpoint Research, largely because of rising costs for memory and other components.

AMD’s combined PC and gaming segment saw revenue fall 8 percent to 3.7 billion dollars. Gaming revenue specifically declined by 40 percent. Despite these drops, the company projects fourth-quarter revenue of approximately 17 billion dollars, which exceeds the average analyst estimate of 16.2 billion dollars. AMD also expects a gross margin of 55 percent for the quarter, slightly below the average estimate of 55.3 percent.

The company is expanding its AI hardware offerings with Helios rack-scale systems. These systems compete directly with Nvidia’s Grace Blackwell and Vera Rubin products. Major tech firms including Meta, Microsoft, Anthropic, OpenAI, and Oracle are beginning to use AMD Helios in their data centers. Meta confirmed last week that its Helios racks are operational. AMD also agreed to invest 1 billion dollars in Meta’s equity offering.

AMD has committed to investing up to 5 billion dollars in Anthropic. Anthropic recently unveiled its prospectus as it prepares for a potential initial public offering. During a visit to Taiwan in October, Lisa Su indicated plans to substantially increase supply in 2027. Both Su and Nvidia CEO Jensen Huang have traveled to Taiwan and South Korea this year to meet with suppliers including TSMC, SK Hynix, and Samsung.

In September, AMD announced an agreement to acquire World Labs for 8.2 billion dollars in an all-stock deal. The San Francisco-based AI lab was founded by Fei-Fei Li. It is developing a world model that simulates 3D environments to assist in creating robots and other physically grounded AI applications.