Skip to content

AMD Stock Jumps After Beat and Strong Q4 Guidance

AMD beat third-quarter revenue and earnings forecasts and guided fourth-quarter sales well above consensus, as its data centre business nearly doubled. The shares jumped in after-hours trading.

AMD (NASDAQ: AMD) beat Wall Street’s third-quarter revenue and earnings forecasts today, and its shares rose around 7% in after-hours trading. The chipmaker reported revenue of $13.4bn against $13.09bn expected, according to Yahoo Finance.

The stock closed the regular session today up 3.7% at $483.90, ahead of the results. At 9:27 pm UK time, about 12 minutes after the 9:15 pm release, it stood at $518.45, up 7.1%.

AMD.US

Revenue for the quarter ended the 26th of September rose 45% from a year earlier and 16% from the second quarter, above the top of AMD’s own guidance. Non-GAAP earnings per share were $2.09 against $1.94 expected, about 8% ahead, and $1.20 a year ago.

Data Center revenue hit a record $8.5bn, up 97% from $4.3bn, driven by EPYC and Instinct MI450. Segment operating income was $2.9bn against $1.1bn. Client and Gaming fell 8% to $3.7bn, with Gaming down 40%.

Non-GAAP gross margin improved to 56% from 54%, and operating margin to 29% from 24%. Chief financial officer Jean Hu said the 74% growth in non-GAAP earnings per share showed “the significant operating leverage in our business model as our Data Center business drives scale”.

The guidance is what stands out. AMD expects fourth-quarter revenue of about $17bn, plus or minus 3%, roughly 5% above the $16.14bn consensus and implying about 66% growth on last year.

“We delivered a record quarter with revenue exceeding the high end of our guidance as Data Center segment sales nearly doubled year-over-year,” Lisa Su said, adding that “we expect growth to accelerate further in the fourth quarter as we scale Helios and ‘Venice’ production.” Anthropic, Meta, Microsoft, OpenAI and Oracle Cloud Infrastructure are running workloads on the first Helios racks.

Cash generation lagged. Free cash flow was $554m against $1.53bn a year ago, while inventories rose to $11.5bn from $7.9bn at the end of 2025. The conference call starts at 10 pm UK time, and the US market opens at 2:30 pm UK time on Wednesday.

Asktraders News Team
Asktraders News Team
Team Member

The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.

Stay ahead of the markets

Sign up to our free Morning Markets email, every weekday before the open.