AMD Stock Jumps About 8% After Hours as Q3 Earnings Beat and Data Center Revenue Nearly Doubles

This article is for general information only and is not financial or investment advice.

Advanced Micro Devices reported third-quarter results after the bell on Tuesday, Nov. 3, that beat Wall Street’s expectations, and the stock jumped about 8% in extended trading, according to CNBC. The chipmaker said revenue rose 45% from a year earlier to a record $13.4 billion, driven by a data center business that nearly doubled. It also guided fourth-quarter revenue well above analyst estimates.

After-hours moves can be volatile and don’t always hold into the next regular session.

AMD earnings report: the key numbers

Here’s how AMD did against LSEG consensus estimates, as reported by CNBC, alongside figures from AMD’s own release:

AMD said non-GAAP gross margin was 56% and non-GAAP operating income was $3.9 billion. Within Client and Gaming, client revenue rose 7% to $2.9 billion on Ryzen mobile processors, while gaming revenue fell 40% to $773 million on lower semi-custom and graphics sales.

Why AMD stock is up after earnings

The main driver is data center demand. AMD credited strong sales of its EPYC server processors and the launch of its Instinct MI450 Series GPUs. CNBC reported that data center now makes up 64% of AMD’s revenue, up from 47% a year ago.

The outlook also helped. AMD expects fourth-quarter revenue of about $17 billion, plus or minus 3%. That is above the $16.2 billion average analyst estimate, per LSEG via CNBC. AMD said the midpoint would mean about 66% growth from a year earlier and a 27% jump from the third quarter.

“We delivered a record quarter with revenue exceeding the high end of our guidance as Data Center segment sales nearly doubled year-over-year,” CEO Lisa Su said in the release. She added that AMD expects growth “to accelerate further in the fourth quarter” as it scales Helios rack systems and “Venice” production.

One softer spot: AMD guided fourth-quarter non-GAAP gross margin to about 55%. CNBC said that was slightly below the 55.3% average estimate, according to StreetAccount.

What did AMD say on the earnings call?

AMD held its call at 5:00 p.m. ET. CNBC quoted Su as saying of AI agents, “Adoption is just starting, and we expect demand to grow sharply as agents are deployed more broadly and take on more complex work.” CNBC noted that AMD’s server CPUs are key for agentic AI apps because they power virtual machines.

AMD said Anthropic, Meta, Microsoft, OpenAI and Oracle Cloud Infrastructure are running workloads on its first Helios rack-scale systems. The company also pointed to pending deals to acquire World Labs and Taalas.

The bigger picture for AMD stock

CNBC reported the stock is up well over 100% this year, but it fell for three straight days before rallying on Tuesday. That slide came during an industrywide selloff tied to fears about overspending on AI infrastructure. The report also came days after Intel’s stock plunged 29% on weak guidance, even though Intel’s own data center revenue grew strongly.

The PC market is a risk. CNBC cited Counterpoint Research data showing global PC shipments fell 4% in the second quarter, as memory and other component costs soared.

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