Advanced Micro Devices (AMD) saw its shares jump 5% in extended trading on Tuesday after the chipmaker reported record third-quarter revenue.
AMD's revenue rose 45% year-on-year to a record $13.38 billion in the third quarter of this year, according to the company's latest quarterly report released Tuesday. Its net income nearly doubled, climbing 95% year-on-year to $2.43 billion. AMD shares closed up 3.65% at $483.90 on Tuesday and rose 5% in after-hours trading following the earnings release.
"We delivered a record quarter with revenue exceeding the high end of our guidance as Data Center segment sales nearly doubled year-over-year," AMD Chair and CEO Lisa Su said in the Tuesday statement.
"Demand for our Instinct and EPYC products continued to strengthen, and we expect growth to accelerate further in the fourth quarter as we scale Helios and 'Venice' production," Su added.
The company's data center segment generated $8.5 billion in revenue, up 97% year-on-year, driven by "strong demand" for AMD EPYC processors and the launch of its Instinct MI450 Series GPUs, the company said.
During Tuesday's earnings call, Su projected strong momentum heading into 2027.
"We think 2027 is going to be a very strong momentum year for both the CPU business as well as the data center AI business," said Su. "We've said the overall company will grow greater than 80%. And for the data center CPU business, we will about double; and for the data center AI business, it will significantly more than double."
Powering AI
AMD continues to expand its products and investments to power AI infrastructure at scale. Its partners include Anthropic, Meta, Microsoft, OpenAI, and Oracle Cloud Infrastructure, which run models and workloads on the chipmaker's Helios rackscale solutions, according to the report.
Last week, AMD announced that it will invest $1 billion in Meta's equity offering. AMD said Meta has installed its first Helios rackscale systems and is testing them ahead of a broader rollout in the near future.
"With Helios now running at Meta, we are taking that partnership to a new scale in the superintelligence era," AMD's Su said at the time. "Together, we are building and deploying infrastructure at gigawatt scale and shaping future generations of silicon, software and systems to enable Meta’s most ambitious superintelligence models and services."