AMD Shatters Revenue Records With $13.4 Billion Quarter

AMD reported record third quarter revenue of $13.4 billion on Tuesday, a 45 percent jump compared to the same period last year. The massive increase changes the financial trajectory for the chipmaker, setting a new benchmark for quarterly earnings. The company’s data center business fueled most of this growth, while its gaming division saw a sharp contraction.

The data center segment generated a record $8.5 billion in sales, up 97 percent year over year. Demand for the company’s EPYC enterprise server processors and the new Instinct MI450 series GPUs drove this surge. Operating margins in this sector widened from 25 percent to 34 percent, pushing operating income up 168 percent to $2.88 billion.

Client business revenue rose 7 percent to $2.95 billion, with sales of Ryzen mobile chips leading the increase. The Embedded segment, which includes components for other hardware, grew 29 percent to $1.1 billion. Gains in aerospace, defense, automotive, communications, and industrial markets contributed to that figure. Conversely, gaming revenue dropped 40 percent to $773 million, a decline AMD attributed to lower semi-custom and graphics revenue.

CFO Jean Hu projected that fourth quarter revenue will reach approximately $17 billion, plus or minus 3 percent. This guidance represents a 66 percent year over year growth rate, primarily driven by the data center segment. The forecast indicates a further 27 percent increase from the record quarter just reported.

This outlook positions AMD to potentially surpass Intel in quarterly revenue for the first time. Intel’s fourth quarter guidance calls for revenue between $15 billion and $16 billion. If both companies meet their targets, AMD’s total will exceed Intel’s, marking a historic shift in the chip industry landscape.

The company’s results show a clear divergence in performance across its business units. The data center and embedded sectors posted strong double digit growth, while the client segment saw modest gains. The gaming division’s 40 percent drop highlights the uneven nature of the current market cycle for hardware vendors.

AMD’s next earnings report will determine if the company can sustain this momentum. The upcoming quarter will test whether the data center demand can offset the weakness in gaming and other areas. Investors will watch closely to see if the projected $17 billion target is met.