AMD forecasts quarterly revenue above estimates as data-center growth accelerates
AMD•AMD expects fourth-quarter revenue of about $17 billion, plus or minus 3%, above analysts’ average estimate of $16.23 billion. Third-quarter revenue rose 45% to $13.38 billion, while data-center revenue jumped 97% to a record $8.55 billion and adjusted profit was $2.09 per share.
1. Quarterly forecast
AMD forecast fourth-quarter revenue of about $17 billion, plus or minus 3%, compared with analysts’ average estimate of $16.23 billion. The company expects an adjusted gross margin of about 55%, versus 56% in the third quarter.
2. Third-quarter results
AMD’s third-quarter revenue rose 45% to $13.38 billion, beating estimates of $13.09 billion. Data-center revenue jumped 97% to a record $8.55 billion, and adjusted profit was $2.09 per share, above estimates of $1.95. Client and gaming sales fell 8% to $3.72 billion, missing estimates.
3. AI products and demand
AMD said its Helios rack, combining its MI455X accelerator and Venice server chips, is in production and set for a larger ramp-up in the fourth quarter. Initial systems are being tested at Meta. AMD also faces a global memory shortage that has left high-bandwidth memory used in AI processors in scarce supply.
