AMD Revenue Jumps 45% as Data-Center Sales Nearly Double

AMD reported record third-quarter revenue of $13.4 billion on Tuesday, up 45% from a year earlier, as sales in its data-center business nearly doubled.

The chipmaker said data-center revenue reached $8.5 billion, an increase of 97%. It attributed the growth to demand for its EPYC server processors and the launch of its Instinct MI450 series graphics processors, which are used in AI computing systems.

Net income rose to $2.4 billion, or $1.46 per diluted share, compared with $1.2 billion, or 75 cents per share, a year earlier. Adjusted earnings, which exclude certain costs, were $2.09 per share, up from $1.20.

The results were uneven outside data centers. AMD's combined client and gaming business brought in $3.7 billion, down 8%. Revenue from the client business, which includes PC processors, rose 7%, while gaming revenue fell 40%. Embedded-chip revenue rose 29% to $1.1 billion.

AMD Chair and CEO Lisa Su said demand for the company's Instinct and EPYC products continued to strengthen. She said AMD expects growth to accelerate as it increases production of its Helios AI systems and next-generation server processors.

For the fourth quarter, AMD forecast revenue of about $17 billion, plus or minus 3%. The midpoint would represent growth of roughly 66% from a year earlier. The forecast is an expectation, not a reported result, and AMD cautioned that actual performance could differ.