AMD's revenue and business outlook both exceeded expectations, with shares rising more than 9% in after-hours trading at one point.

November 4 — AMD's third-quarter revenue rose 45% year-over-year to $13.38 billion, beating the market expectation of $13.09 billion; adjusted earnings per share came in at $2.09, above the expected $1.95. Among the segments, data center revenue surged 97% year-over-year to a record $8.55 billion, topping the expected $8.2 billion. Client and gaming revenue, however, fell 8% year-over-year to $3.72 billion, below the expected $3.79 billion.

AMD CEO Lisa Su expects the company's revenue to grow more than 80% in 2027, above the 77% analyst estimate compiled by LSEG. She expects data center chips to contribute about 80% of revenue next year and to drive most of the company's revenue and earnings growth. AMD shares rose more than 8% after hours.

AMD expects fourth-quarter revenue of about $17 billion, above the market expectation of $16.23 billion; adjusted gross margin is expected to be about 55%, broadly in line with the market expectation of 55.27% and below the third quarter's 56%.

On the product front, the Helios rack system, equipped with the MI455X accelerator and Venice server chips, has entered production and is expected to ramp up output in the fourth quarter, with the first systems now being tested at Meta. AMD reached an agreement with Meta in February this year to sell it up to $60 billion of AI chips over five years, and the deal also allows Meta to buy up to 10% of AMD's shares.

According to data from the BIT stock platform, after the earnings release, AMD rose more than 9% at one point after hours, lifting chip stocks such as Nvidia and SK Hynix.