AMD (AMD) shares rose fractionally in extended trading on Tuesday after the semiconductor company reported third-quarter results and guidance that came in above Wall Street’s forecast.
For the period ending Sept. 27, the Dr. Lisa Su-led AMD earned an adjusted $1.20 per share as revenue rose 36% year-over-year to come in at $9.25B. Data Center revenue rose 22% year-over-year to $4.34B, aided by its MI300 AI accelerator and its Instinct and EPYC processors. Analysts were anticipating $4.14B in Data Center revenue.
Revenue from the Client and Gaming segment, which houses AMD’s PC business, rose to $4.048B. Client revenue was $2.75B, up 46% year-over-year, while gaming revenue surged 181% to $1.3B, largely due to strong demand for Radeon gaming GPUs. Sales from the Embedded segment fell 8% year-over-year to $857M.
Analysts had expected the company to earn $1.17 on revenues of $8.74B for the entire quarter.
“We delivered an outstanding quarter, with record revenue and profitability reflecting broad based demand for our high-performance EPYC and Ryzen processors and Instinct AI accelerators,” said Dr. Lisa Su, AMD chair and CEO. “Our record third quarter performance and strong fourth quarter guidance marks a clear step up in our growth trajectory as our expanding compute franchise and rapidly scaling data center AI business drive significant revenue and earnings growth.”
Looking ahead, AMD said it expects fourth-quarter sales to be between $9.3B and $9.9B, with the mid-point of $9.6B above the $9.21B consensus. Adjusted gross margin is expected to be 54.5%. AMD added its outlook does not include any impact of potential sales of its MI308 shipments to China.
Intel (INTC) and Nvidia (NVDA) ticked up slightly in sympathy with AMD’s results and guidance.
The company will hold a conference call at 5 p.m. EST to discuss the results.