Tech & AI
AMD rallies after hours as data center sales lift quarterly results
AMD shares rose 5.0% after hours on Tuesday when the chipmaker beat third-quarter revenue estimates and forecast fourth-quarter sales above expectations, led by its data center business.
Quick Read
- AMD reported third-quarter revenue of $13.38 billion, above analyst estimates, with data center sales of $8.5 billion.
- AMD forecast fourth-quarter revenue of about $17 billion, above the $16.23 billion analysts had estimated.
- Su said higher memory costs weighed on PC demand and that AMD expects PC shipments across the market to fall in 2027.
- The after-hours gain came in thin trading and may shrink or reverse when the full market opens at 9:30 a.m. ET.
What did AMD report?
AMD shares rose 5.0% in after-hours trading on Tuesday, the thinner session that runs after the 4 p.m. ET close. The chipmaker reported third-quarter revenue of $13.38 billion, above analyst estimates of $13.09 billion.
Why it matters: Adjusted earnings per share, the profit figure a quarter is usually graded on, also topped analyst estimates. Data center sales, from chips for the servers behind AI and cloud services, reached $8.5 billion.
“Demand for our Instinct and EPYC products continued to strengthen,” said Lisa Su, AMD's chair and chief executive.
Why did the outlook matter as much as the quarter?
Guidance, a company's own forecast for its next results, often carries more weight than the quarter just ended. AMD said it expects fourth-quarter revenue of about $17 billion, against analyst estimates of $16.23 billion.
Su said growth should accelerate as AMD scales production of its Helios and Venice products. On the earnings call, she said Data Center AI revenue in 2027 could grow faster than the company projected at its last update. “It is true that demand is higher than supply,” she said.
Wedbush analyst Matt Bryson kept an Outperform rating on the stock. Speaking on CNBC, he said he saw no weakness in the chip supply chain.
What could hold the stock back?
The other side: PCs are the soft spot. Su told analysts that higher memory and component costs weighed on demand as PC sales slowed late in the quarter. She said AMD expects PC shipments across the market to fall in 2027. Intel flagged a similar problem in its own report days earlier.
AMD also expects its adjusted gross margin, the share of sales left after production costs, to slip slightly from the third quarter.
The stock closed Tuesday's regular session at $483.90, up 3.7% before the report. That still left it 25.5% below its 52-week high of $649.42, set in October.
After-hours moves can shrink or reverse once the full market opens at 9:30 a.m. ET. Wednesday's regular session will show whether the gain holds.
For readers
What it could mean for you: If you own AMD shares directly, this report reaches you in full, with no other holdings to offset it. The after-hours gain was set by far fewer traders than a regular session, and it may shrink or grow once trading opens Wednesday. Beyond that, the stock could hinge on whether data center demand keeps outrunning the PC slowdown Su described. Inside a broad fund, AMD is a small slice: 0.89% of the combined value of the 500 largest U.S. companies.
Questions and answers
Why did AMD stock rise after hours?
AMD's third-quarter revenue and adjusted earnings per share came in above analyst estimates, and its fourth-quarter revenue forecast also topped estimates. The shares rose 5.0% after hours on Tuesday.
How much revenue does AMD expect in the fourth quarter?
AMD said it expects about $17 billion, against analyst estimates of $16.23 billion. Su expects growth to accelerate as the company scales Helios and Venice production.
Is AMD's PC business slowing?
Su told analysts that higher memory and component costs weighed on PC demand late in the third quarter. She said AMD forecasts a drop in market-wide PC shipments in 2027.
How much does AMD matter to a broad index fund?
AMD accounts for 0.89% of the combined value of the 500 largest U.S. companies. Its 3.7% gain in regular trading on Tuesday added $32 to $100,000 spread across them by size.
The numbers
| Advanced Micro Devices (AMD) price | $483.90 |
|---|---|
| Advanced Micro Devices (AMD) change | +3.65% |
| Advanced Micro Devices (AMD) market value | $790 billion |
| Advanced Micro Devices (AMD) 52-week high | $649.42 |
| S&P 500 change | +0.36% |
| 10-year Treasury yield | 4.95% |
Tuesday’s close
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