AMD revenue rises 45% to $13.4 billion, forecasts $17 billion quarter

AMD reported record third quarter revenue of $13.4 billion, up 45% from a year earlier, in its earnings release. Data center revenue nearly doubled to a record $8.5 billion, up 97%, on demand for EPYC processors and the launch of its Instinct MI450 Series GPUs.

AMD expects fourth quarter revenue of about $17 billion, plus or minus 3%, which at the midpoint would be growth of about 66% from a year earlier and 27% from the third quarter. Chief executive Lisa Su said the company expects growth to accelerate further as it scales production of Helios and Venice.

Net income rose 95% to $2.4 billion, or $1.46 per share, and non-GAAP earnings per share rose 74% to $2.09. Gross margin was 54%, or 56% on a non-GAAP basis. Client and gaming revenue fell 8% to $3.7 billion as gaming sales dropped 40%, while embedded revenue rose 29% to $1.1 billion.

The company said Anthropic, Meta, Microsoft, OpenAI and Oracle Cloud Infrastructure are running models and workloads on its first Helios systems.

AMD also recorded a $1.07 billion non-cash charge, or 66 cents a share, in the quarter to account for warrants it granted OpenAI and Meta as part of large chip supply agreements, Reuters reports. Each company can buy up to roughly 10% of AMD if it meets certain milestones, and the charge comes as shipments under the agreements begin to ramp up.