AMD revenue jumps 45% to $13.38 billion as data centre sales nearly double; Q4 forecast $17 billion

AMD's revenue rose 45% from a year earlier to $13.38 billion in the July to September quarter, beating Wall Street's forecast of $13.09 billion, as sales of chips for AI data centres nearly doubled, CNBC reported. Adjusted earnings were $2.09 a share against $1.95 expected, and the stock rose 8% in after-hours trading on Tuesday.

The numbers

In rupees, at today's dollar rate of about Rs 276.7, AMD took in roughly Rs 3.7 trillion in three months.

Why it grew

Chief executive Lisa Su said she expects AMD's server revenue to double in 2027 and AI data centre growth to speed up faster than the company predicted three months ago. AMD's server processors (CPUs) are in demand for "agentic" AI apps that run on their own for hours, and its Helios rack systems, which compete with Nvidia's, are being used by Meta, Microsoft, Anthropic, OpenAI and Oracle, CNBC reported.

"We have worked across our supply chain to secure the wafers, substrates, advanced packaging, memory, and other key components needed to support much higher growth next year," Su said on the earnings call.

The weak spot: PCs

The PC side is shrinking. Global PC shipments fell 4% in the second quarter because of soaring memory and component costs, according to Counterpoint Research, and AMD's combined PC and gaming segment fell 8%. Intel blamed the same weak PC market for its poor outlook last week, when its shares dropped 29% in a day.

What it means if you are buying a laptop in Pakistan

Laptop and desktop prices here follow the dollar and global component costs. The memory shortage that is hurting PC makers worldwide feeds into those costs, and AMD's comments show chipmakers putting their supply effort behind AI servers. If you are pricing an imported machine, run the dollar price through our currency converter to see the rupee cost before duties.

AMD shares are up about 125% this year, though they fell for three days before Tuesday on wider fears that companies are overspending on AI.