AMD beats Q3 revenue and EPS, but gross‑margin guidance merely meets expectations

AMD reported third‑quarter numbers that beat Wall Street estimates on both revenue and earnings per share, but the company’s gross‑margin outlook did not come in stronger than ￰0￱ was enough to push the stock lower in extended ￰1￱ company said adjusted earnings per share came in at $1.20, beating the $1.16 ￰2￱ reached $9.25 billion, ahead of the $8.74 billion ￰3￱ rose 36% compared to the same quarter last ￰4￱ quarter ended on September ￰5￱ income was $1.24 billion, or 75 cents per share, up from $771 million, or 47 cents per share, in the same quarter a year ￰6￱ the fourth quarter, AMD guided to about $9.6 billion in revenue, which implies 25% growth year over ￰7￱ were expecting around $9.15 ￰8￱ company said it expects an adjusted gross margin of 54.5%, which matched StreetAccount’s ￰9￱ repeated that the guidance does not include any revenue from shipments of its Instinct MI308 chips to ￰10￱ said during the release, “We are not including revenue from China‑bound MI308 shipments in the outlook at this time,” repeating the same stance from last ￰11￱ shares had climbed 107% year‑to‑date ahead of these results, while the Nasdaq had risen 21% over the same ￰12￱ outlines major AI infrastructure partnerships AMD reached a strategic agreement with OpenAI last ￰13￱ arrangement could lead to OpenAI holding as much as 10% of ￰14￱ part of the deal, OpenAI plans to deploy 6 gigawatts of AMD Instinct GPUs across multiple chip ￰15￱ first 1‑gigawatt portion is expected to roll out in the second half of next ￰16￱ years, OpenAI and many other AI developers primarily used Nvidia GPUs to train and run large ￰17￱ shift signals growing supply and ecosystem ￰18￱ said in October it plans to deploy 50,000 AMD Instinct MI450 chips in its cloud next ￰19￱ also introduced its new “Helios” rack‑scale design and said it supports the Open Rack Wide standard introduced by Meta at the Open Compute Project Global ￰20￱ and AMD expanded their collaboration with G42 to build a large‑scale cluster in the UAE using AMD Instinct MI355X ￰21￱ and AMD announced a multi‑year effort to support Zyphra with clusters running AMD Instinct MI350X GPUs for multimodal ￰22￱ is increasing its use of AMD Instinct GPU infrastructure across its enterprise ￰23￱ said AMD Instinct MI355X GPUs are now available across its cloud ￰24￱ expanded cloud offerings to include AMD Instinct MI325X now and MI350X later this ￰25￱ Mahindra will bring AMD Instinct GPUs and AMD EPYC CPUs into its Cloud BlazeTech ￰26￱ ￰27￱ of Energy announced two upcoming supercomputers based on AMD ￰28￱ Lux AI system will use AMD Instinct MI355X GPUs, AMD EPYC CPUs, and AMD Pensando ￰29￱ Discovery system, expected in 2028, will run on next‑gen AMD EPYC “Venice” CPUs and AMD Instinct MI430X GPUs, part of AMD’s new MI400 ￰30￱ center, client, and gaming segments show broad growth AMD’s data center business generated $4.34 billion in revenue in the quarter, up 22%.

Analysts were expecting $4.13 ￰31￱ revenue came in at $2.75 billion, up 46%, beating the $2.61 billion ￰32￱ revenue totaled $1.30 billion, up 181%, above the $1.05 billion estimate. Amazon, a meaningful cloud customer, disclosed in a filing that it sold all 822,234 of its AMD shares as of September ￰33￱ position was originally built in the first ￰34￱ released ROCm 7 software to improve training and inference ￰35￱ company also completed the divestiture of its ZT Systems data center manufacturing business to ￰36￱ partners expanded cloud services powered by 5th Gen AMD EPYC ￰37￱ said its new Amazon EC2 M8a instances deliver up to 30% better performance than the prior ￰38￱ introduced new X11 platforms powered by the same ￰39￱ and AMD also announced plans to combine quantum computing with high‑performance compute in future ￰40￱ updated its PC and gaming lines with Ryzen Threadripper 9000WX, Threadripper PRO 9000X, and FSR ￰41￱ 4 support doubled to more than 85 ￰42￱ company expanded its embedded line with AMD EPYC Embedded 4005 and Ryzen Embedded 9000 processors for industrial and edge ￰43￱ your free seat in an exclusive crypto trading community - limited to 1,000 members.