AMD Posts Strong Quarter and Forecasts $17 Billion Revenue

Advanced Micro Devices reported third-quarter revenue and adjusted earnings above analysts’ estimates on November 3 and forecast fourth-quarter revenue of about $17 billion, exceeding the average Wall Street projection as its data-center business expanded sharply. The chipmaker said revenue for the quarter ended September 26 rose 45% from a year earlier to $13.38 billion, compared with analysts’ $13.09 billion estimate. Adjusted earnings were $2.09 a share, above the $1.95 estimate. AMD’s fourth-quarter revenue forecast is $17 billion, plus or minus 3%, versus an analyst average of $16.23 billion. Data-center revenue nearly doubled, increasing 97% year over year to a record $8.55 billion. That topped the $8.20 billion estimate cited in the results report. The segment includes processors and accelerators used in data centers, as demand for computing to develop and run artificial-intelligence systems grows. AMD said its Helios rack system, designed to combine its AI accelerators and server processors, is in production and is expected to ramp more substantially in the fourth quarter. Initial systems are being tested at Meta. The company’s forecast does not specify how much...