AMD forecasts $17 billion fourth-quarter revenue on strong AI chip demand
The chipmaker expects revenue to exceed analyst estimates as data-centre sales hit a record high.
Advanced Micro Devices (AMD) on Tuesday forecast fourth-quarter revenue of approximately $17 billion, plus or minus 3 per cent, according to reports from The Economic Times and Hindustan Times. This projection sits above the average analyst estimate of $16.23 billion to $16.3 billion.
The company's data-centre revenue rose 97 per cent to a record $8.55 billion in the third quarter, surpassing estimates of $8.20 billion. This growth follows a shift in AI workloads toward real-world applications, increasing demand for graphics processing units (GPUs) and central processing units (CPUs).
AMD CEO Lisa Su stated during an analyst call that the company expects revenue to increase more than 80 per cent next year. Su also noted that the company has confidence in its ability to sustain revenue growth for years to come.
While data-centre operations grew, revenue from the client and gaming division, which includes PC processors and console chips, declined 8 per cent to $3.72 billion in the third quarter. This figure was below the estimated $3.79 billion.
The semiconductor industry continues to face supply constraints, particularly regarding high-bandwidth memory (HBM) used in advanced AI chips. AMD is also expanding its presence through the acquisition of World Labs, a startup developing technology to model three-dimensional environments.