AMD Q3 earnings beat forecasts, data centre revenue hits record high
AMD reported Q3 net income of $2.43bn, up 95 per cent year-on-year, with total revenue rising 45 per cent to a record $13.38bn. Data centre revenue surged 97 per cent to a record $8.5bn. The company forecast Q4 data centre revenue growth will accelerate and full-year revenue will more than double.
AMD has posted third-quarter results that exceeded market expectations, driven by robust demand. Net profit for the three months ended 30 September reached $2.43bn, a 95 per cent increase from a year earlier, while adjusted earnings per share rose to $2.09.
Total revenue for the quarter climbed 45 per cent to a record $13.38bn, buoyed by a 97 per cent surge in data centre revenue to a record $8.5bn. However, revenue from the client and gaming segment fell 8 per cent to $3.72bn, slightly below forecasts.
The company expects data centre revenue growth to accelerate in the current quarter, with full-year revenue more than doubling. It projected that data centre revenue would account for over 80 per cent of total revenue next year.
AMD also estimated that total revenue in the current quarter would be about $17bn, plus or minus 3 per cent, and that full-year revenue next year would grow by more than 80 per cent. Both figures were slightly above market expectations.
In after-hours trading following the announcement, AMD's share price rose more than 9 per cent.