The chip maker is showing “real” revenue from AI, shrugging off sustainability concerns and leading to an upbeat forecast.
The stock market finished mostly higher on Election Day, but Apple and Palantir tumbled. AMD stock jumped on earnings late.
Advanced Micro Devices beat analyst estimates for the third quarter and with its outlook for Q4. AMD stock jumped in extended trading.
AMD reported third-quarter earnings that beat Wall Street expectations, with revenue jumping 45% from a year earlier. Revenue in the chipmaker's data center business nearly doubled, and CEO Lisa Su said AMD can meet accelerating demand for AI chips.
AMD forecast fourth-quarter revenue above Wall Street estimates on Tuesday, buoyed by strong demand for its chips as its multibillion-dollar effort to challenge Nvidia's dominance of the AI semiconductor market gains momentum.
The deal the chip maker struck with OpenAI last year weighed on net income during the quarter.
AMD delivers record quarter as Data Center segment revenue grows 97% year-over-year, driven by record sales of AMD Instinct GPUs and AMD EPYC CPUs AMD delivers record quarter as Data Center segment revenue grows 97% year-over-year, driven by record sales of AMD Instinct GPUs and AMD EPYC CPUs