AMD, the US chipmaker that is Nvidia's closest rival in AI processors, reported record third-quarter revenue of $13.4 billion on 3 November, up 45% from a year earlier and 16% from the second quarter, according to its results release.
Analysts had expected about $13.06 billion in revenue and adjusted earnings of $1.94 a share, Investing.com reports. AMD earned $2.09 a share on that adjusted basis, and its shares rose more than 7% in after-hours trading.
AI chips now carry the company
Data centre revenue reached a record $8.55 billion, up 97%. AMD put the growth down to demand for its EPYC server processors and the launch of its Instinct MI450 series of AI accelerators. The segment made up about 64% of AMD's revenue in the quarter.
AMD says OpenAI, Anthropic, Meta, Microsoft and Oracle Cloud Infrastructure are running models and workloads on its first Helios systems, rack-sized machines built around the MI450 chips and its sixth-generation EPYC processors. "Demand for our Instinct and EPYC products continued to strengthen," chief executive Lisa Su said, according to Investing.com.
The rest of the business was mixed. Client and gaming revenue fell 8% to $3.7 billion: PC processor sales rose 7% to $2.9 billion, while gaming fell 40% to $773 million. Embedded chips grew 29% to $1.1 billion.
Related · AI and Tech StakPalantir Tops $2B a Quarter as Revenue Jumps 96%The AI software firm's US business sales now outrun its government work, but a drop in new business contracts kept investors cautious.Profit, and a warrant charge
Operating income more than doubled to $2.8 billion and net income rose 95% to $2.4 billion, or $1.46 a share. The gap between that figure and the adjusted $2.09 is largely a $1.1 billion charge for the change in value of warrants AMD has issued to "certain customers", which comes with its large AI supply deals.
Free cash flow was weaker at $554 million, a margin of 4%, as AMD built up for a bigger fourth quarter. It ended September with $15.8 billion in cash and short-term investments.
Su said growth should "accelerate further in the fourth quarter as we scale Helios and 'Venice' production", referring to the rack systems and the next EPYC server processor. AMD forecasts a non-GAAP gross margin of about 55%.
