AMD stock jumps 8% on earnings as data center revenue nearly doubles
AMD reported better-than-expected third-quarter results, driven by booming sales of AI chips
TL;DR
- AMD's Q3 earnings and revenue exceeded Wall Street estimates, with stock rising 8% after hours.
- Data center revenue nearly doubled year-over-year, now accounting for 64% of AMD's total revenue.
- CEO Lisa Su expects server revenue to double by 2027 and data center AI growth to accelerate.
- AMD's server CPUs are crucial for agentic AI applications, boosting demand and stock performance.
- PC chip sales declined 8% year-over-year, with the overall PC market facing struggles.
- AMD is investing heavily in AI companies like Anthropic and has committed to acquiring World Labs.
- The company's Helios systems directly compete with Nvidia's AI offerings.