Shares of Advanced Micro Devices (AMD) jumped as much as 8% in extended trading on Tuesday, November 3, after the company’s strong third quarter results, and an equally strong guidance for the ongoing quarter as well.
Revenue for the quarter stood at $13.38 billion, higher than the estimate of $13.09 billion. On a year-on-year basis, the company’s revenue grew by 45%. Earnings Per Share (EPS) stood at $2.09, higher than the $1.95 estimate.
For the ongoing quarter, AMD expects $17 billion in revenue with a variation of 3% in either direction, comfortably higher than the average analyst estimate of $16.3 billion.
AMD’s MD & CEO Lisa Su said she expects the company’s server revenue to double from last year in 2027, while the data center AI growth will accelerate even faster than what the company had projected three months prior. It is the data center business that will contribute to a majority of AMD’s revenue and earnings growth in the future.
During the quarter gone by, AMD’s data center business contributed to 64% of the overall topline, from 47% earlier.
AMD’s server CPUs are key for agentic apps, as they power virtual machines and can run for hours by themselves. It is this agentic demand that took AMD shares to a record high last month. Su expects demand to grow sharply in this segment as more agents are deployed to take on more complex work.
Similar to Intel, AMD’s PC chip sales fell 8% from last year, although it now is a smaller part of the business. Intel had earlier warned of a slowdown in the PC market globally, sending the stock lower by a record 29% in a single session.
The company has also made a commitment to invest $5 billion in IPO-bound Anthropic. Su added on the earnings call that they plan on “substantially increasing” their supply over the next year.
AMD shares ended 6.7% higher in extended trade at $516.32. The stock had closed 3.7% higher in regular trading on Tuesday before the results were announced after the bell. The stock is up 117% so far this year.
AMD shares jump 7% in extended trade after strong Q3 results, guidance, data center bet