AMD CEO Lisa Su speaks at a Senate Commerce, Science, and Transportation Committee hearing in Washington on May 8, 2025. The leaders of some of the biggest technology and artificial intelligence companies will go to Congress on Thursday with a wish list of sorts that at its top has doing away with regulation they say inhibits their firms’ growth and by default, sends business to China.
Nathan Howard | Bloomberg | Getty Images
Advanced Micro Devices reported fiscal third-quarter results that exceeded Wall Street expectations, but gave margin guidance was inline with estimates. The stock fell almost 5% in extended trading.
Here’s how the company did in comparison with LSEG consensus:
- Earnings per share: $1.20 adjusted vs. $1.16 expected
- Revenue: $9.25 billion vs. $8.74 billion expected
Revenue increased 36% from a year earlier in the fiscal third quarter, which ended on Sept. 27, according to a statement.
Net income climbed to $1.24 billion, or 75 cents per share, from $771 million, or 47 cents per share, a year earlier.
For the fourth quarter, AMD expects about $9.6 billion in revenue, implying 25% growth. That’s above LSEG’s $9.15 billion consensus. AMD sees an adjusted gross margin of 54.5% for the quarter, meeting StreetAccount’s consensus of 54.5%.
AMD, which is trying to keep pace with Nvidia in the market for artificial intelligence processors, said the guidance does not include revenue from shipments of its Instinct MI308 chips to China. Executives said the same thing last quarter.
As of Tuesday’s close, AMD shares were up 107% so far this year, while the Nasdaq is up 21%.
AMD reached a deal with OpenAI last month that could see the AI startup company take a 10% stake in the chipmaker. OpenAI will deploy 6 gigawatts of AMD’s Instinct graphics processing units over multiple years and across multiple generations of hardware, the companies said, beginning with an initial 1-gigawatt rollout of chips in the second half of next year.
For years OpenAI and other companies relied on graphics chips from Nvidia for running large-scale AI models.
“We expect this partnership will significantly accelerate our data center AI business with the potential to generate well over $100 million in revenue over the next few years,” AMD CEO Lisa Su said on a conference call with analysts. The AI business is on a path toward generating tens of billions in annual revenue in 2027, she said.
Also in October, Oracle announced plans to deploy 50,000 AMD Instinct MI450 AI chips in its cloud starting next year.
AMD’s data center business, which includes standard central processing units and GPUs for AI, generated $4.34 billion in fiscal third-quarter revenue, up 22%. Analysts polled by StreetAccount were looking for $4.13 billion.
Client revenue reached $2.75 billion, which was up 46% and more than StreetAccount’s $2.61 billion consensus. Revenue from gaming totaled $1.30 billion, up 181%. StreetAccount’s consensus was $1.05 billion.
Microsoft and Sony ramped up production of their respective Xbox and PlayStation video game consoles ahead of the holiday season, leading to growth in semi-custom chip revenue for AMD, Su said.
Amazon, a key cloud customer for AMD, disclosed in a Tuesday filing that it had sold all 822,234 of its AMD shares as of Sept. 30. Amazon built the position sometime in the first quarter.
Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.
This is developing news. Please check back for updates.
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https://www.cnbc.com/2025/11/04/amd-q3-earnings-report-2025.html
