TLDR
- AMD stock traded near $518 premarket Wednesday, up about 7% from Tuesday’s $483.90 close.
- Q3 earnings per share were $2.09 on revenue of $13.4 billion, both above estimates.
- Data center revenue rose 97% to $8.5 billion.
- Q4 revenue is guided to $17 billion, versus the $16.3 billion analysts expected.
- Lisa Su said 2027 revenue should grow 80% or more.
AMD stock was trading near $518 in premarket action Wednesday, up about 7% from Tuesday’s $483.90 close. The move followed a third-quarter report that beat on both earnings and revenue.
Advanced Micro Devices, Inc., AMD
The pop came after a rough stretch. The stock fell nearly 13% last week, including a nearly 11% drop on Friday, then lost 7.5% on Monday.
Tuesday’s regular session brought a 3.65% gain. The iShares Semiconductor ETF (SOXX) rose 2.5% that day and added 1.9% after hours.
Funding worries were behind the selling. The Wall Street Journal reported Friday that lenders are getting pickier, and that smaller cloud companies have been shut out of the bond market.
Then the numbers arrived. Earnings per share were $2.09, against estimates of $1.95 to $1.97.
Revenue rose 45% from a year ago to $13.4 billion. Analysts had expected about $13.1 billion.
Data Center Does the Heavy Lifting
Data center revenue jumped 97% to $8.5 billion. Analysts had forecast $8.19 billion, and the year-ago figure was $4.34 billion.
The unit made up about 63% of total revenue. Wall Street expects that to reach three-quarters within a year.
CEO Lisa Su said demand for Instinct and EPYC products keeps getting stronger. She expects growth to speed up in Q4 as Helios and “Venice” production scales.
Client revenue, which includes PC sales, came in at $2.9 billion. That missed the $3.06 billion estimate.
Gaming sales fell 40% to $773 million, though that still topped the $655 million estimate. A memory and storage shortage has pushed up prices for graphics cards and console chips, which has hurt demand.
Guidance and Customer Ties
AMD guided fourth-quarter revenue to $17 billion, give or take $500 million. Analysts were looking for $16.3 billion.
Su stopped short of a full 2027 outlook. She said revenue should grow 80% or more, compared with the 77% Wall Street had forecast.
She also said AMD is raising R&D spending across silicon, software and systems. The aim is to back its largest customers’ plans for the next three to five years.
Supply deals tie AMD closely to its buyers. It issued warrants for up to 160 million units each to OpenAI and Meta, and put $1 billion into Meta’s recent equity sale.
It may invest up to $5 billion in Anthropic as part of a supply deal. It has also guaranteed customer leases of up to $4.1 billion.
Intel’s report last week went the other way. Its stock fell nearly 29% after weak guidance tied to a slump in the PC market.
Premarket trading Wednesday put AMD at $518, up $34.10 from Tuesday’s close.
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