AMD forecasts about $17 billion in quarterly revenue as data-center sales nearly double
The chipmaker's data-center revenue jumped 97% to $8.55 billion in the third quarter, and it guided fourth-quarter revenue to about $17 billion, above analyst estimates. Its shares rose more than 7% before Wednesday's open.
Advanced Micro Devices eased some of the market’s worries about AI spending with a stronger-than-expected outlook, Reuters reported.
Results and guidance
- Third-quarter data-center revenue rose 97% to $8.55 billion, above analysts’ estimate of $8.20 billion.
- For the fourth quarter AMD expects revenue of about $17 billion, plus or minus 3%, compared with a consensus of roughly $16.2 billion, and an adjusted gross margin of about 55%.
- Chief executive Lisa Su said she expects total revenue to grow more than 80% in 2027, above the 77% analysts forecast, according to LSEG data.
Why it matters
Su said demand is broad, from server processors (CPUs) to AI accelerators, a sign that AI computing spending is reaching beyond Nvidia’s chips. Morgan Stanley analysts warned that the current growth in server CPUs may not last indefinitely amid an industry-wide shortage, but said AMD is executing better than rivals. Intel’s shares fell more than 20% last week after it reported weak PC demand.
AMD shares rose 7.3% in premarket trading on Wednesday. The stock has gained about 126% this year.
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