Advanced Micro Devices Inc. (AMD) Chairman and Chief Executive Officer Lisa Su speaks at the company’s Gamers Day event on Wednesday, October 7, 2026 in Seoul, South Korea.
Cho Sung Joon | Bloomberg | Getty Images
advanced micro device reported third-quarter results on Tuesday, with revenue up 45% and data center revenue nearly doubling from a year earlier, beating Wall Street expectations. Shares rose 8% in extended trading.
Here are the chipmaker’s earnings and LSEG’s consensus forecast for the quarter.
Earnings per share: $2.09 adjusted vs. $1.95 expected Revenue: $13.38 billion vs. $13.09 billion expected
AMD said in a statement that revenue increased from $9.25 billion in the same period last year. like neocloud coreweave and Nevius It rebounded early Tuesday and continued to rise even after AMD released its results.
CEO Lisa Su said on an earnings call that she expects server revenue to double in 2027 from a year ago, and data center AI growth to accelerate even faster than the company expected 90 days ago. The company expects data centers to drive the majority of its revenue and profit growth.
“We have worked across our supply chain to secure the wafers, substrates, advanced packaging, memory and other key components we need to support our significant growth next year,” Su said on the earnings call.
AMD’s report will be released in a few days. intel revealed similar data center growth, with the segment’s revenue increasing 78% in the third quarter. But Intel’s stock price plunged 29% on Friday on weak guidance and concerns about Intel’s ability to meet demand.
The data center division is the bulk of AMD’s business, accounting for 64% of its total revenue, up from 47% in the same period last year.
After years of trailing Nvidia in the market for artificially intelligent graphics processing units (GPUs), AMD’s central processing units (CPUs) are making a big comeback with the rise of agent AI apps, including: Metamuse. AMD’s server CPUs are important for agent apps because they power virtual machines and can run on their own for hours. Demand from agent AI drove AMD stock to record highs in October.
“We are just beginning to see adoption, and we expect demand to increase rapidly as agents are deployed more widely and take on more complex tasks,” Su said on an earnings call with analysts.
Struggling PC market
AMD stock has risen about 125% since the beginning of the year, but it fell for three straight days before rebounding on Tuesday amid an industry-wide decline on concerns about overspending on AI.
AMD is also a major player in the struggling PC market, which Intel last week blamed for its poor outlook. AMD and Intel are the largest manufacturers of traditional x86 processors found in many laptops and desktops, but other laptops armbased processors such as Qualcomm And apple.
Global PC shipments fell 4% year over year in the second quarter due to rising costs for memory and other components, according to Counterpoint Research.
AMD reports PC chip sales in a segment that includes gaming chips. Sales for the business were $3.7 billion, down 8% from the same period last year. Gaming revenue was down 40% from a year ago.
For the fourth quarter, AMD expects revenue to be about $17 billion, beating analysts’ average estimate of $16.2 billion, LSEG said. According to StreetAccount, AMD expects gross margin for the current quarter to be 55%, slightly below the average estimate of 55.3%.
AMD also sells data center GPUs and a full rack-scale system called Helios that competes directly with Nvidia’s Grace Blackwell and Vera Rubin systems. meta, microsoftanthropology, OpenAI, and oracle Companies are starting to use AMD Helios in their data centers. Meta announced last week that its Helios racks are operational and that AMD has agreed to invest $1 billion in Meta’s stock offering.
AMD has also committed to investing up to $5 billion in Anthropic, which released its long-awaited prospectus last week as it inches closer to a potentially historic initial public offering.
During a visit to Taiwan in October, Hsu said the company plans to “significantly increase supply in 2027.” Hsu and Nvidia CEO Jensen Huang have both traveled to Taiwan and South Korea multiple times this year, meeting with key suppliers including: Taiwan semiconductor manufacturing company and memory leader SK Hynix And Samsung.
AMD announced in September that it would acquire World Labs for $8.2 billion in an all-stock deal. The San Francisco-based AI Lab, founded by industry pioneer Fei-Fei Li, develops so-called world models that simulate 3D environments to aid in the development of robots and other physically grounded AI applications.
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