AMD reports record quarterly revenue amid data center expansion
AMD posted third-quarter revenue of $6.8 billion, driven by a 97% surge in data center sales despite a decline in the gaming sector.
AMD announced third-quarter revenue of $6.8 billion, a 45% increase compared to the previous year. The growth is primarily attributed to its data center segment, which recorded $3.5 billion in revenue, nearly doubling its year-over-year performance. This expansion follows high demand for EPYC enterprise server CPUs and the rollout of Instinct MI300 series GPUs.
Conversely, the company's gaming division saw a significant downturn, reflecting cooling market demand for console and discrete graphics hardware. Despite this, growth in the client segment—driven by Ryzen mobile processor sales—provided a partial offset, contributing $1.88 billion to the quarterly results.
Looking ahead, AMD provided a fourth-quarter revenue outlook of approximately $7.5 billion. If met, this projection indicates continued momentum in the data center space, potentially narrowing the revenue gap between AMD and its primary competitor, Intel, in the server and processor markets.