AMD Posts Q3 Double Beat as Data Center Segment Shines, Growth Expected to 'Accelerate' in Q4

Advanced Micro Devices Inc (NASDAQ:AMD) reported financial results for the third quarter after the market close on Tuesday. Here’s a rundown of the chipmaker’s report.

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AMD Q3 Earnings Highlights

AMD reported third-quarter revenue of $13.38 billion, beating analyst estimates of $13.09 billion. The chipmaker reported adjusted earnings of $2.09 per share for the quarter, beating estimates of $1.95 per share, according to Benzinga Pro.

Total revenue increased 45% on a year-over-year basis. Here’s a breakdown of revenue by segment.

• Data Center: $8.5 billion, up 97% year-over-year
• Client and Gaming: $3.7 billion, down 8% year-over-year
• Embedded: $1.1 billion, up 29% year-over-year

“We delivered a record quarter with revenue exceeding the high end of our guidance as Data Center segment sales nearly doubled year-over-year,” said Dr. Lisa Su, AMD chair and CEO. “Demand for our Instinct and EPYC products continued to strengthen, and we expect growth to accelerate further in the fourth quarter as we scale Helios and ‘Venice’ production.”

AMD reported $2.8 billion of third-quarter operating income and ended the period with approximately $7.40 billion in cash and cash equivalents and $8.37 billion in short-term investments.

AMD expects fourth-quarter revenue of approximately $17 billion, plus or minus 3%, versus estimates of $16.23 billion. Fourth-quarter adjusted gross margin is expected to be approximately 55%, versus 56% in the third quarter.

AMD management will discuss the quarter on an earnings call scheduled for 5 p.m. ET. A link to the call has been provided below.

AMD Shares Rise After Earnings

AMD Price Action: AMD shares were up approximately 127% year-to-date heading into the print. The chip stock was up 7.34% in after-hours Tuesday, trading at $519.40 at the time of publication, according to Benzinga Pro.

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