AMD tops third-quarter estimates as AI chip demand lifts data center sales

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AMD tops Q3 on AI chip sales

Highlights

AMD reports Q3 adjusted EPS of $2.09 and revenue of $13.38 billion, both exceeding analyst expectations, with revenue up 45% year-over-year.
Data center sales nearly double year-over-year, now making up 64% of AMD's total revenue versus 47% last year, driven by strong AI demand.
Client segment revenue falls 8% to $3.7 billion and gaming revenue drops 40% year-over-year, highlighting ongoing weakness outside AI infrastructure.

Quarterly results and data center growth

As reported by CNBC, citing AMD in a statement and press release, the chipmaker posts adjusted earnings per share of $2.09 for the third quarter, ahead of the $1.95 expected by analysts polled by LSEG, while revenue reaches $13.38 billion versus expectations of $13.09 billion.

Revenue rises 45% from $9.25 billion a year earlier, and the stock jumps 7% in extended trading after the release. Data center sales nearly double from a year earlier, and that unit accounts for 64% of AMD's overall revenue, up from 47% in the same period last year.

Chief Executive Lisa Su says in the release that growth in data center processors is expected to "accelerate further" and that meeting demand is not a problem. She adds that AMD's product portfolio, customer base and supply chain relationships support sustained strong revenue growth and expanding profitability over the coming years.

AI demand reshapes market positioning

AMD's report lands days after Intel discloses 78% third-quarter growth in its own data center segment, but investor reaction differs sharply after Intel shares fall on concerns about weak guidance and its ability to meet demand.

After years of trailing Nvidia in artificial intelligence GPUs, AMD is also benefiting from stronger demand for server CPUs tied to agentic AI applications such as Meta's Muse. Those processors are used to power virtual machines and long-running workloads, helping drive AMD shares to a record in October.

Outside AI infrastructure, AMD remains exposed to softer end markets. Revenue in its client and gaming-related segment falls 8% from a year earlier to $3.7 billion, while gaming revenue drops 40%, underscoring continued weakness in parts of the PC and gaming chip business.

Our earlier article on rising U.S. AI data center costs and delays explained that a growing share of planned projects is being pushed back or reassessed as financing becomes more expensive and timelines slip. We also noted that power-grid constraints and local opposition are adding friction to new builds, raising questions about how quickly AI computing capacity can scale despite strong demand.

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