AMD last night published record third-quarter results, as anticipated in the preview we published yesterday. Revenue reached $13.4 billion, up 45% from a year earlier, above the top of the company's guidance and above the roughly $13.1 billion analysts expected. Net income reached $2.4 billion, and adjusted earnings per share jumped 74% to $2.09.
The growth engine is the data center segment, where revenue jumped 97% to $8.5 billion, far above the roughly $6.6 billion analysts expected. Growth came from EPYC server processors and the first sales of the MI450 AI accelerator series. Data centers now account for about 64% of all company revenue, compared with 47% a year ago. According to CEO Lisa Su, Anthropic, Meta, Microsoft, OpenAI and Oracle are already running workloads on AMD's Helios systems, its direct answer to Nvidia's servers.
Not every segment grew: PC and gaming revenue fell 8% to $3.7 billion, similar to the weakness Intel reported last week. Management expects growth to accelerate in the fourth quarter as it ramps Helios systems and its next-generation Venice server processors.
Investors were thrilled. According to Investing.com, the stock rose about 3.7% in regular trading and about 7.5% more after hours. The report comes on a day the Nasdaq rebounded, and reinforces the case that demand for AI infrastructure remains strong even as investors worry about the giants' spending. For Nvidia, it is a clear sign that its rival is starting to take share in a market it dominates.
