AMD reports $8.5 billion in data-center revenue, forecasts $17 billion for fourth quarter

AMD’s Data Center segment revenue rose 97% to a record $8.546 billion in the third quarter, while the chipmaker reported record third-quarter revenue of $13.377 billion, up 45% from a year earlier.

For the fourth quarter, AMD separately forecast about $17 billion in revenue, plus or minus 3%. That figure is company guidance for a future period, not a reported result. AMD said the midpoint would represent roughly 66% growth from a year earlier and 27% growth from the third quarter.

Data Center revenue increased from $4.341 billion a year earlier and rose 27% from $6.718 billion in the preceding quarter. AMD attributed the increase to strong demand for its EPYC server processors and the launch of its Instinct MI450 Series graphics processors. The release did not disclose how much revenue came from either product line.

The segment generated $2.882 billion in operating income, up 168% year over year and 37% sequentially. AMD’s Client and Gaming segment recorded $3.722 billion in revenue, down 8% from a year earlier, while Embedded revenue rose 29% to $1.109 billion.

For the fourth quarter, AMD projected a non-GAAP gross margin of about 55%, compared with 56% in the third quarter. Chief Financial Officer Jean Hu said the outlook reflected expected acceleration in revenue and earnings driven by demand across the company’s Data Center portfolio.

The third-quarter figures cover the period ended Sept. 26. AMD announced the results on Nov. 3.