AMD CEO Lisa Su speaks at a Senate Commerce, Science, and Transportation Committee hearing on May 8, 2025 in Washington. Leaders of major technology and artificial intelligence companies will head to Congress on Thursday with a wish list of sorts, including lifting regulations that top officials say stifle growth and forcing them to move their businesses to China by default.
Nathan Howard | Bloomberg | Getty Images
advanced micro device reported third-quarter results that beat Wall Street expectations, but said margin guidance was in line with expectations. The stock price fell nearly 5% in extended trading.
Here’s how the company performed compared to the LSEG consensus:
Earnings per share: $1.20 adjusted vs. $1.16 expected Sales: $9.25 billion vs. $8.74 billion expected
Sales for the fiscal third quarter ended Sept. 27 increased 36% from the same period last year, according to the announcement.
Net income was $1.24 billion, or 75 cents per share, up from $771 million, or 47 cents per share, in the year-ago period.
AMD expects fourth-quarter revenue to be approximately $9.6 billion, representing 25% growth. This beats the LSEG consensus of $9.15 billion. AMD expects adjusted gross margin for the quarter to be 54.5%, meeting the StreetAccount consensus of 54.5%.
AMD, which is trying to keep pace with Nvidia in the artificial intelligence processor market, said the guidance does not include revenue from shipments of Instinct MI308 chips to China. Executives said the same thing last quarter.
As of Tuesday’s close, AMD stock is up 107% year-to-date, while the Nasdaq is up 21%.
AMD reached an agreement with OpenAI last month that could see the AI startup take a 10% stake in the chipmaker. OpenAI plans to deploy 6 gigawatts of AMD’s Instinct graphics processing units over multiple years and across multiple generations of hardware, starting with an initial 1 gigawatt chip deployment in the second half of next year, the companies said.
For years, OpenAI and other companies have Nvidia To run large-scale AI models.
“We expect this partnership to significantly accelerate our data center AI business and generate well over $100 million in revenue over the next few 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.
Also in October, oracle announced plans to deploy 50,000 AMD Instinct MI450 AI chips in the cloud starting next year.
AMD’s data center business, which includes standard central processing units and GPUs for AI, saw revenue increase 22% to $4.34 billion in the fiscal third quarter. Analyst estimates compiled by Street Account were for $4.13 billion.
Client revenue reached $2.75 billion, up 46% and beating the StreetAccount consensus of $2.61 billion. Revenue from games totaled $1.3 billion, an increase of 181%. StreetAccount consensus was $1.05 billion.
microsoft and sony Su said AMD ramped up production of its Xbox and PlayStation video game consoles ahead of the holiday season, leading to increased revenue for AMD’s semi-custom chips.
AmazonThe company, AMD’s major cloud customer, said in a filing Tuesday that it had sold all 822,234 AMD shares as of Sept. 30. Amazon established itself at some point in the first quarter.
Executives will discuss the results with analysts on a conference call beginning at 5 p.m. ET.
This is developing news. Please check back for the latest information.
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