AMD forecasts $17 billion in Q4 revenue above estimates — Channel NewsAsia

AMD forecasts revenue of about $17 billion in the fourth quarter, with a possible variance of 3%. This is above analysts’ average estimate of $16.23 billion, Channel NewsAsia reports.

After the forecast was released, AMD shares rose by more than 6% in after-hours trading. Since the beginning of the year, the company’s share price has more than doubled.

Record data center revenue

In the third quarter, AMD’s revenue increased by 45% to $13.38 billion, exceeding analysts’ expectations of $13.09 billion. Adjusted earnings per share were $2.09, compared with the projected $1.95.

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Revenue from the data center division rose by 97% to a record $8.55 billion, while analysts expected $8.20 billion. According to Reuters, demand for AMD graphics processing units and central processing units is being driven by the shift of AI workloads toward deploying models in application systems.

AI systems

AMD is expanding its artificial intelligence product lineup and competing with Nvidia not only through individual chips but also through server rack systems. Its flagship Helios rack, which combines the MI455X accelerator and Venice server chips, is already in production. The company plans to increase its production in the fourth quarter, while Meta is testing the first systems.

At the same time, AMD’s adjusted gross margin in the fourth quarter is projected at about 55%, compared with 56% in the third quarter. Sales in the client and gaming segment, which includes processors for personal computers and consoles, fell by 8% in the third quarter to $3.72 billion.