AMD revenue jumps 45% as data-center sales nearly double
The chipmaker reports $13.38 billion in quarterly sales and projects about $17 billion for the fourth quarter.
AMD's data-center business nearly doubled in the third quarter, pushing total sales to a record $13.38 billion as demand for its server processors and AI chips grew.
Revenue rose 45% from a year earlier. Adjusted earnings were $2.09 per share, while earnings under standard accounting rules were $1.46 per share. Adjusted results exclude certain costs and are not the same measure as reported profit.
The data-center unit brought in $8.55 billion, up 97%. AMD attributed the growth to demand for its EPYC server processors and the launch of its Instinct MI450 graphics processors, which are used for AI computing.
The strength was not shared across every business. Combined client and gaming sales fell 8% to $3.72 billion. Within that total, client sales rose 7%, but gaming revenue dropped 40%.
For the fourth quarter, AMD expects about $17 billion in revenue, plus or minus 3%, and an adjusted gross margin of about 55%. That sales midpoint would be 66% above the year-earlier quarter. The outlook is a company forecast, not a result already delivered.
Chief Executive Lisa Su said demand for Instinct and EPYC products continued to strengthen and that AMD expects growth to accelerate further as it scales production. For readers, the next test is whether that demand turns into the sales and margins the company is projecting.
The report follows Monday's pre-earnings selloff. The new numbers answer part of that earnings question; they do not settle how investors will value the business after the full results discussion.
