AMD $AMD reported third-quarter revenue of $13.4 billion, up 45% from a year earlier, with revenue in the Data Center segment increasing 97% to a record $8.5 billion. Adjusted earnings came to $2.09 per share, compared with $1.20 a year earlier, the company said.
Analysts expected revenue of $13.1 billion, according to the Wall Street Journal. They expected adjusted earnings of $1.95 per share, according to CNBC, or $1.97, according to Bloomberg. Bloomberg said analysts forecast data center revenue of $8.2 billion.
AMD The stock rose in extended trading Tuesday.
“We delivered a record quarter with revenue exceeding our guidance, with Data Center sales nearly doubling year over year. » AMD said President and CEO Lisa Su in a statement. She said the company expects growth to accelerate in the fourth quarter as it increases production of its Helios rack systems and “Venice” processors.
On a GAAP basis, net income was $2.4 billion, or $1.46 per diluted share, up from $0.75 a year earlier. The results include a charge of $1.1 billion from the change in the fair value of warrants issued to certain customers. The accusation arises from AMD The deal with OpenAI, according to the Wall Street Journal.
Revenue from the Customer and Gaming segment fell 8% to $3.7 billion. Gaming revenue fell 40% to $773 million due to lower sales of semi-custom and graphics products, while customer revenue rose 7% to $2.9 billion. Embedded segment revenue increased 29% to $1.1 billion.
Anthropic, Meta $META, Microsoft $MSFT, OpenAI and Oracle $ORCL Cloud Infrastructure runs models and workloads on early Helios systems, which use AMD Instinct MI450 series and 6th generation GPU AMD EPYC processors, the company said.
For the fourth quarter, AMD expects revenue of about $17 billion, plus or minus 3%. The midpoint implies growth of about 66% from the previous year and 27% from the third quarter. The company expects a non-GAAP gross margin of approximately 55%, up from 56% in the third quarter.
Analysts expected fourth-quarter revenue of $16.2 billion, according to CNBC, or $16.3 billion, according to Bloomberg.
AMD The stock fell last week as investors reacted to Intel $INTC’s results, which highlight weak PC sales and a shortage of server chips. Intel reported that data center and AI revenue increased 78% to $7.3 billion. Its stock fell more than 22% after hours Thursday.
The higher cost of memory chips has hampered PC manufacturing and sapped buyer interest, according to Bloomberg.
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