AMD beats expectations as agentic AI sparks its data center revenue growth engines
Shares of the chipmaker Advanced Micro Devices Inc. rose more than 5% in late trading today after it delivered solid third-quarter earnings and revenue today, with data center sales almost doubling from a year ago. The company reported earnings before certain costs such as stock compensation of $2.09 per share, easily beating Wall Street’s forecast […] The post AMD beats expectations as agentic…
Advanced Micro Devices (AMD) saw its shares soar more than 5% in late trading following the release of its strong third-quarter earnings and revenue report. The company's data center segment, which accounts for 64% of its overall revenue compared to just 47% a year ago, played a significant role in this growth. This surge in data center sales can be attributed to the rise of agentic AI applications like Meta Platforms Inc.'s Muse, where AMD's CPUs are proving more efficient than GPUs.
AMD's Chief Executive Lisa Su revealed that AI adoption is beginning and demand will surge as these agents tackle more complex tasks. In addition to CPUs, AMD also sells GPUs, which are bundled into data center-ready rack-scale systems called Helios. Major tech companies such as Anthropic, OpenAI, Microsoft, Oracle, and Meta are already utilizing AMD Helios systems in their data centers.
AMD has committed to investing $5 billion in Anthropic, which is set to go public soon. The company's supply chain has been strengthened in recent months, with CEO Lisa Su visiting Taiwan to secure key components. This boost in supply, along with AMD's competitive products and strong relationships with major clients, bodes well for the company's future despite the recent volatility in the AI industry.
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