AMD (AMD) reported its third-quarter results after the bell on Tuesday, beating expectations on the results as the company’s data center revenue grew 97%. AMD shares rose more than 7% following the news. 483.90 +17.06 (+3.65%) Close: 4:00:02 pm EST 519.70 +35.80 (+7.40%) After-hours: 5:30:00 pm EST “Demand for our Instinct and EPYC products continued to strengthen, and we expect growth to accelerate further in the fourth quarter as we scale production of Helios and ‘Venice,'” CEO Lisa Su said in a statement. “With our leading product portfolio and deep customer and supply chain relationships, we are confident in our ability to sustain very strong revenue growth and expand profitability in the years ahead.” For the quarter, AMD posted earnings per share (EPS) of $2.09 and revenue of $13.38 billion. Analysts were projecting earnings per share of $1.97 on revenue of $13.08 billion, according to Bloomberg consensus estimates. The company posted earnings per share and revenue of $1.20 billion and $9.2 billion, respectively, in the same period last year. AMD’s data center division generated sales of $8.5 billion, above estimates of $8.19 billion. It reported revenue of $4.34 billion in the same period last year. Last month, the company announced its Helion reference design, a server rack designed to be equipped with various AMD CPU and GPU configurations depending on customer needs. Revenue from AMD’s Client business, which includes PC sales, reached $2.9 billion. Wall Street was looking for $3.06 billion. However, sales from the chipmaker’s gaming business totaled $773 million, down 40% year over year. Analysts estimated revenue of $655 million. The company’s gaming division includes products ranging from PC graphics cards to custom silicon for gaming consoles. Both categories face higher prices due to ongoing memory and storage shortages, depressing customer demand. AMD’s report comes after rival Intel reported better-than-expected third-quarter results but issued guidance well below analysts’ projections last week. The news sent Intel shares down nearly 29%. The company attributed the outlook to a worse-than-expected decline in the PC market. The industry is facing two overlapping factors: difficult comparisons with last year, when Microsoft ended support for Windows 10, forcing companies to buy newer Windows 11 systems, and the continued rise in PC prices, which is affecting demand. Subscribe to Yahoo Finance’s Week in Tech newsletter. · Yahoo Finance Email Daniel Howley at dhowley@yahoofinance.com. Follow him on X at @DanielHowley, or reach out on Signal or Telegram.
