AMD Stock Surges on Q3 Earnings as Data Center Revenue Climbs 97%

AMD reported record data center sales of $8.5B, beating estimates, and forecasted $17B in Q4 revenue. The company took a $1.1B charge related to warrants for OpenAI and Meta, allowing them to buy AMD shares at $0.01 each. AMD's stock initially rose 9% after-hours but later declined. CFO Jean Hu noted the charge reflects AMD's stock price increase and warrant conditions.

AMD stock rose 4% to $483.90, then another 5% in after-hours trading after Q3 earnings beat expectations. Non-GAAP operating income increased 75% to $3.9B, but free cash flow dropped 64% annually to $554M. Inventory surged $3B to $11.5B. Management expects revenue growth above 80% through 2027, with Q4 guided at $17B. Gross margin is projected to decline slightly to 55%. The company is investing heavily in inventory and capacity, partly funded by customer warrants and partnerships.

AMD reported Q3 earnings of $2.09 EPS on $13.38B revenue, beating estimates. Data center revenue grew 97% YoY to $8.5B, while gaming sales fell 40% to $773M. CEO Lisa Su cited strong demand for Instinct and EPYC products, expecting further growth in Q4. AMD's results contrast with Intel's recent guidance, which fell short of projections.

AMD shares rose 2.5% premarket after reporting better-than-expected results and guidance. Analysts praised its data center strength, with Jefferies forecasting $40B in server CPU sales for 2027. AMD expects 80% revenue growth in 2027, driven by data center and embedded segments. Analysts noted inventory rise and cash flow concerns, while Morgan Stanley highlighted AMD's market share gains over Intel.

AMD stock rose 2.5% premarket after reporting better-than-expected results and guidance. The company forecasts 80% revenue growth in 2027, driven by data center demand, with server CPU growth at 100%. Analysts note rising inventories and caution on sustainability.

AMD reported record Q3 revenue of $13B, net income of $2.4B, and projects Q4 revenue of $17B. If achieved, this would surpass Intel's expected $15-16B, marking the first time AMD's revenue exceeds Intel's. AMD's revenue has doubled in two years, while Intel's has remained flat.