AMD Posts Strong Q3 Results and Bullish Q4 Outlook as AI Demand Fuels Data Center Growth

Advanced Micro Devices Inc. (NASDAQ: AMD) delivered stronger-than-expected third-quarter results and an upbeat outlook for the fourth quarter, highlighting the growing momentum of its artificial intelligence-driven data center business despite U.S. trade restrictions with China.

For Q3, AMD reported adjusted earnings per share (EPS) of $1.20 on revenue of $9.25 billion, surpassing analyst estimates of $1.17 EPS and $8.74 billion in revenue, according to Investing.com. The company’s data center segment was the standout performer, posting a 22% year-over-year increase to $4.34 billion. This growth was fueled by surging demand for its 5th Gen AMD EPYC processors and AMD Instinct MI350 Series GPUs, beating Wall Street expectations of $4.13 billion.

AMD noted that the data center revenue did not include any sales from the newly restricted Instinct MI308 GPU shipments to China, which were impacted by recent U.S. export controls on advanced chip technologies.

The company’s client and gaming businesses also performed strongly, with revenue climbing 73% year-over-year to $4 billion, reflecting robust consumer demand and a recovery in PC and gaming markets.

Looking ahead, AMD expects fourth-quarter revenue to reach approximately $9.6 billion, plus or minus $300 million—representing about 25% year-over-year growth and topping market forecasts of $8.75 billion. The company projects an adjusted gross margin of 54.5% for the quarter.

AMD described its Q4 guidance as “a clear step up” in its growth trajectory, driven by expanding compute capabilities and accelerating demand in its data center AI division. Despite a slight dip of over 1% in after-hours trading, AMD’s continued success in high-performance computing and AI chips underscores its strengthening position in the global semiconductor market.