Advanced Micro Devices reported third-quarter financial results on Tuesday that exceeded Wall Street consensus estimates. The company posted revenue growth of 45% compared to the prior year, while data center segment sales nearly doubled from the same period a year earlier. The chipmaker’s stock rose 8% in extended trading following the announcement, though gains were later reduced amid broader market movements.
Data center operations now represent the majority of AMD’s business, accounting for 64% of overall revenue, an increase from 47% in the prior year period. CEO Lisa Su indicated on the earnings call that management expects server revenue to double year-over-year during 2027 and projects that data center artificial intelligence growth will accelerate beyond previous internal forecasts made 90 days prior. Su noted that the company had worked with its supply chain to secure necessary components including wafers, substrates, and advanced packaging materials to support anticipated expansion.
AMD’s results followed Intel’s disclosure of similar data center growth, with Intel reporting 78% revenue growth in that segment during the third quarter. However, Intel’s stock experienced a significant decline earlier in the week due to concerns regarding forward guidance and capacity to meet demand. AMD’s central processing units are gaining prominence in the market for artificial intelligence applications, particularly agentic AI systems that can operate autonomously for extended periods, a capability valued for running virtual machines.
For the personal computer and gaming segments, AMD reported combined revenue of $3.7 billion, representing an 8% decline from the year-earlier period, with gaming revenue specifically declining 40%. The company provided fourth-quarter revenue guidance of approximately $17 billion, exceeding the average analyst estimate of $16.2 billion. AMD also disclosed it expects gross margin of 55% for the quarter.
Beyond its core processor business, AMD continues expanding its data center systems portfolio through Helios rack-scale systems designed to compete with rival offerings. Major technology companies including Meta, Microsoft, Anthropic, and OpenAI have begun deploying these systems in their data centers. Additionally, AMD committed to investing $1 billion in Meta’s equity offering and pledged up to $5 billion toward Anthropic, an artificial intelligence company preparing for a potential initial public offering.
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