Amd Stock Surges After Earnings Beat, Data‑center Revenue Nearly Doubles

amd stock jumps after earnings beat

Advanced Micro Devices reported third‑quarter results that exceeded Wall Street forecasts, sending amd stock up about 7‑8% in after‑hours trading. The company posted revenue of $13.38 billion, up 45% year‑over‑year, and data‑center sales nearly doubled.

amd earnings overview

Adjusted earnings per share came in at $2.09 versus the expected $1.95. Revenue topped analysts’ estimate of $13.09 billion, driven largely by a 97% rise in data‑center revenue.

amd earnings call highlights

CEO Lisa Su told investors that server revenue is expected to double in 2027 and that AI‑driven data‑center growth will outpace the company’s prior projections. She emphasized supply‑chain actions taken to secure wafers, substrates and advanced packaging for the anticipated surge.

amd earnings report and future guidance

The firm forecast fourth‑quarter revenue of about $17 billion, beating the consensus $16.2 billion. Gross margin is projected at roughly 55%, marginally below the 55.3% estimate.

Impact on amd stock price and market perception

Following the release, amd stock rose roughly 7% in regular trading and added another 8% in extended sessions. The rally follows three days of declines amid broader AI‑spending concerns. Analysts note that the data‑center segment now represents 64% of total revenue, up from 47% a year earlier.

AMD’s data‑center portfolio includes GPUs and full rack‑scale systems branded Helios, which are being adopted by firms such as Meta, Microsoft, Anthropic, OpenAI and Oracle. Meta recently confirmed its Helios racks are operational, and AMD committed a $1 billion equity investment in Meta’s offering.

While the PC market remains soft, with global shipments down 4% in Q2, AMD’s combined PC and gaming segment fell 8% to $3.7 billion, and gaming revenue dropped 40% year‑over‑year.

Looking ahead, Su indicated plans to substantially increase supply in 2027, including further engagements with TSMC, SK Hynix and Samsung. The company also announced an $8.2 billion all‑stock acquisition of World Labs, an AI research firm.

Investors will watch how the accelerated AI demand translates into sustained revenue growth, especially as competitors like Nvidia and Intel adjust their own strategies.

Sources: CNBC, Yahoo Finance, Bloomberg.com.