AMD earnings exceed estimates due to strong demand for data center chips

Advanced Micro Devices (AMD) on Tuesday reported record quarterly results above analysts’ expectations as rising demand for artificial intelligence helped boost sales of its data center chips.

AMD reported adjusted earnings per share of $1.20 on revenue that jumped 36% year over year to a record $9.25 billion in the third quarter, well above analyst estimates compiled by Visible Alpha.

Sales in AMD’s data center segment – its largest ever – rose 22% year over year to $4.3 billion, slightly above expectations. The results did not include any revenue from shipments of AMD’s MI308 AI chipset line to China, which AMD said it would resume after reaching a revenue-sharing agreement with the Trump administration.

CEO Lisa Su said the strong results represent “a clear step in our growth trajectory as our expanding computing franchise and rapidly expanding data center AI business drive significant revenue and earnings growth.”

For the current quarter, AMD said it expects revenue between $9.3 billion and $9.9 billion, higher than the analyst consensus of $9.17 billion. This range does not include any revenue from AMD MI308 shipments to China as well, AMD said.

AMD shares fell nearly 1% in extended trading after the release, after falling nearly 4% in Tuesday’s session amid broader declines as concerns about an artificial intelligence bubble weighed on technology stocks. The chipmaker’s shares have doubled in value this year.