AMD forecast eases AI spending fears as data-center sales surge
Record data-center revenue and a stronger next-quarter forecast offered investors new evidence on AI-chip demand.
TL;DR
- AMD reported $13.4 billion in third-quarter revenue, with data-center revenue rising 97% year over year to $8.55 billion.
- Reuters reported that the company forecast faster growth and approximately $17 billion in fourth-quarter revenue, sending shares higher after hours.
- The outlook is management guidance and does not establish how much demand will convert into future revenue.
AMD reported third-quarter revenue of $13.4 billion and data-center revenue of $8.55 billion, up 97% year over year. The company’s results exceeded its previous revenue guidance, according to its earnings release. [1]
Reuters reported that AMD forecast fourth-quarter revenue of approximately $17 billion, plus or minus 3%, and expected overall revenue growth above 80% in 2027. The report said the forecast and quarterly results lifted AMD shares in extended trading. [1] [2]
Chief executive Lisa Su attributed demand to data-center CPUs and AI products, while the company said its Helios rack-scale system was in production and planned for a larger ramp-up. These are company statements about products and expectations, not independent evidence of future sales. [1] [2]
The reported quarter confirms strong recent data-center sales, but the next-quarter and 2027 outlooks remain forecasts. The pace of deployment, supply constraints and conversion of customer demand into shipments remain open. [1] [2]
Why it matters
AMD’s results provide a new data point on AI infrastructure demand and the scale of its competition with Nvidia. The outlook will be tested against supply, customer deployments and realized revenue in subsequent quarters.
Editor's note
Company guidance is forward-looking; realized revenue may differ.