AMD forecasts quarterly revenue above estimates as data centre growth accelerates — SkimNews
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- AMD expects fourth-quarter revenue of about US$17 billion, plus or minus 3%, above LSEG’s US$16.23 billion analyst average, and adjusted gross margin of about 55%, versus 55.27% estimated and 56% in the third quarter.
- AMD reported third-quarter revenue up 45% to US$13.38 billion, beating the US$13.09 billion estimate, while adjusted profit reached US$2.09 per share versus US$1.95 expected.
- AMD’s data-centre revenue jumped 97% to a record US$8.55 billion, exceeding the US$8.20 billion estimate as real-world AI workloads increased demand for its GPUs and CPUs.
- AMD shares rose more than 8% in extended trading and have more than doubled this year; Intel gained 2%, Nvidia climbed over 1% and Broadcom advanced 1.2%.
- Helios is in production for a larger fourth-quarter ramp, combining AMD’s MI455X accelerator and new Venice server chips, with initial systems undergoing testing at Meta.
- AMD agreed in February to sell Meta up to US$60 billion of AI chips over five years, with the agreement allowing the Facebook owner to purchase as much as 10% of the chipmaker.
- AMD’s client-and-gaming sales fell 8% to US$3.72 billion, missing the US$3.79 billion estimate even as its data-centre business set records.
Why it matters: AMD’s 97% data-centre growth and US$17 billion Q4 guide make its five-year, up-to-US$60 billion Meta chip agreement central to its AI push. Helios is already in production, with initial systems in testing at Meta, giving Meta an AMD alternative to Nvidia’s rack-scale systems, while an 8% client-and-gaming decline shows the momentum is not broad-based.
Ask SkimNews
