AMD Shares Jump 8% as Data Center Sales Nearly Double and Its Forecast Tops Wall Street’s

SAN FRANCISCO, Nov. 3 (TodayViralUSA) — Advanced Micro Devices shares jumped about 8% in after-hours trading on Tuesday after the chipmaker reported record quarterly revenue, a near-doubling of its data center business and a sales forecast well ahead of Wall Street’s expectations, easing some of the fears about AI spending that have weighed on tech stocks.

AMD said revenue rose 45% from a year earlier to a record $13.38 billion in the third quarter, topping analysts’ average estimate of $13.09 billion, according to LSEG data. Adjusted earnings came to $2.09 a share, beating forecasts of $1.95. Net income nearly doubled to $2.4 billion.

Data centers drive the surge

Data center revenue climbed 97% to a record $8.55 billion, ahead of estimates of $8.20 billion, powered by sales of the company’s EPYC server processors and the launch of its Instinct MI450 series AI chips.

“We delivered a record quarter with revenue exceeding the high end of our guidance as Data Center segment sales nearly doubled year-over-year,” Chair and CEO Lisa Su said in a statement.

For the fourth quarter, AMD forecast revenue of about $17 billion, plus or minus 3%, well above the $16.23 billion analysts had expected. That would be growth of roughly 66% from a year earlier. On a call with analysts, Su said she expects total revenue to rise more than 80% in 2027, above the roughly 77% analysts had projected, with data center chips accounting for about 80% of sales.

Weak spot in gaming and PCs

Not every business grew. Revenue in AMD’s client and gaming segment fell 8% to $3.72 billion, slightly short of estimates, as gaming sales dropped 40% on weaker demand for console and graphics chips. The company said it expects PC shipments across the industry to fall by a double-digit percentage next year, though Su said AMD would outperform the market.

A relief for chip stocks

The results came after a rough stretch for semiconductor shares. AMD fell 17.5% in October as investors questioned whether heavy borrowing to fund AI data centers would pay off, and the Philadelphia Semiconductor Index slumped 15.4% for the month, Investing.com noted. Rival Intel plunged about 29% on Friday after a weak outlook.

Even so, AMD shares are up about 125% this year. Intel, Nvidia and Broadcom also edged higher in extended trading after AMD’s report, Reuters said.