AMD smashes Q3 consensus on 97% data center growth

Revenue of $13.4 billion surpasses analysts by $290 million.
Adjusted EPS of $2.09 bests the Street by about 8%.
Revenue is expected to grow at a fast pace in Q4, hitting $17 billion.

Clay Webster FXStreet

Advanced Micro Devices (AMD) stock bumped up 7% afterhours on Tuesday as the chipmaker posted third-quarter beats to the Wall Street estimates. AMD reported $2.09 in adjusted earnings per share (EPS) on revenue of $13.38 billion, up 45% YoY.

Wall Street had been expecting $1.94 per share on revenue of $13.09 billion.

Data center revenue surged 97% YoY to $8.5 billion on the strength of the company's EPYC processors and its AMD Instinct™ MI450 Series GPUs.

The Client and Gaming segment saw revenue fall 8% YoY to $3.7 billion, while the Embedded segment revenue climbed 29% YoY to $1.1 billion.

Adjusted gross margin was flat with the second quarter at 56%, but the adjusted gross margin climbed 2 percentage points to 29%. Adjusted net income of $3.47 billion rose 77% from a year earlier and 26% from Q2.

For Q4 2026, AMD expects revenue of $17 billion or approximately 66% YoY growth, which is stronger growth than the third quarter. However, adjusted gross margin is expected to decrease slightly to 55%.

Author

Clay Webster

FXStreet

Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.

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