Earnings · $AMD
AMD Jumps After Hours as Data Center Sales Nearly Double and Fourth-Quarter Outlook Tops $17 Billion
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The chipmaker beat third-quarter estimates on revenue and earnings and guided to about 27% sequential growth, though PC chip sales came in light.
By Emmanuel Cruz ·
Advanced Micro Devices reported record third-quarter revenue on Tuesday and forecast a steep increase for the final three months of the year, sending its shares sharply higher in after-hours trading. The company said revenue reached $13.4 billion, up 45% from a year earlier and up 16% from the second quarter's $11.5 billion [1].
Data center was the driver. AMD said data center revenue was $8.5 billion, up 97% from a year earlier, while embedded revenue rose 29% to $1.1 billion. Client and gaming revenue fell 8% to $3.7 billion [1]. Gross margin was 54% on a GAAP basis and 56% on a non-GAAP basis. Net income was $2.4 billion, or $1.46 per diluted share, and non-GAAP earnings were $2.09 per share, up 74% from a year earlier [1].
Those figures cleared Wall Street's bar. Yahoo Finance, citing Bloomberg consensus, said analysts had expected earnings of $1.97 per share on revenue of about $13.08 billion, and data center revenue of $8.19 billion [2]. The picture was less even in PCs: Yahoo Finance reported that client revenue was $2.9 billion against expectations of $3.06 billion, while gaming revenue of $773 million beat an estimate of $655 million even though it fell 40% from a year earlier [2]. The softness in client chips is notable after Intel's weak outlook last week, which was tied to a worse-than-expected decline in the PC market, as Yahoo Finance noted in its preview of the report [3].
The forecast carried the most weight. AMD guided to fourth-quarter revenue of about $17 billion, plus or minus 3%, and a non-GAAP gross margin of about 55% [1]. At the midpoint, that implies roughly 66% growth from a year earlier and 27% growth from the third quarter [1]. Chair and Chief Executive Lisa Su said the company delivered a record quarter with revenue above the high end of its guidance, and Chief Financial Officer Jean Hu said the outlook reflects "accelerating revenue and earnings growth" [1]. The sources reviewed did not give a Wall Street consensus figure for the fourth-quarter guidance, so it is unclear how far the outlook exceeds expectations.
Shares reacted quickly. AMD closed the regular session at $483.90, up 3.65%, and traded at $520.78 after hours, up 7.62% from the close, according to Yahoo Finance [2]. The stock had already been rising during the day as chip shares rebounded from a steep selloff, with Yahoo Finance's preview showing it up more than 4% in early trading [3].
The report matters beyond one company. Semiconductor stocks have been under pressure on concerns that heavy AI spending may not earn adequate returns, and AMD's data center results offer a read on whether demand for AI accelerators and server processors is holding up. A guided jump of this size also raises the bar for execution, since the fourth-quarter figure is far above the third quarter's actual result.
On Wednesday, investors will see whether the after-hours gain holds in regular trading, and how other chip names respond. They will also watch for management commentary on the call about supply, the PC market and the pace of data center growth, as well as how the broader market digests the midterm election results arriving overnight.
Sources:
[1] AMD, "AMD Reports Third Quarter 2026 Financial Results", November 3, 2026. https://ir.amd.com/news-events/press-releases/detail/1303/amd-reports-third-quarter-2026-financial-results
[2] Yahoo Finance, "AMD stock rises after Q3 earnings beat, as data center revenue climbs 97%", November 3, 2026. https://uk.finance.yahoo.com/news/amd-stock-rises-after-q3-earnings-beat-as-data-center-revenue-climbs-97-213907282.html
[3] Yahoo Finance, "AMD to report Q3 results as chip stocks rebound following last week's steep selloff", November 3, 2026. https://finance.yahoo.com/technology/article/amd-to-report-q3-results-as-chip-stocks-rebound-following-last-weeks-steep-selloff-150210938.html
This article was produced with AI assistance. It is for informational purposes only and is not financial advice. StockVolt and its authors may hold positions in securities mentioned.