AMD Revenue Jumps 45% on AI Data Center Demand — SkimNews
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- AMD reported $13.38 billion in third-quarter revenue, beating estimates of $13.09 billion and jumping 45% year over year.
- AMD's data center segment drove growth, with sales nearly doubling and now accounting for 64% of total revenue, up from 47% a year ago.
- Lisa Su said server revenue is expected to double year over year by 2027, with data center AI growth accelerating faster than projected just 90 days prior.
- AMD secured supply chain commitments for wafers, substrates, and advanced packaging to support significantly higher output next year, Su stated on the earnings call.
- AMD expects fourth-quarter revenue of $17 billion, above the $16.2 billion analyst average, though gross margin guidance of 55% slightly trails expectations.
- AMD is investing $1 billion in Meta’s equity offering and up to $5 billion in Anthropic, as its Helios AI systems gain adoption at Meta, Microsoft, and Oracle.
- AMD acquired AI startup World Labs for $8.2 billion in stock, gaining access to its 3D 'world model' technology for robotics and physical AI applications.
Why it matters: AMD’s revenue jump and raised outlook show it is capturing real AI infrastructure demand beyond Nvidia, with $6 billion in strategic investments signaling deep alignment with major AI players. This shifts competitive pressure onto Intel, which saw its stock drop 29% despite strong data center growth, due to weak guidance and supply concerns.
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