AMD revenue and earnings outlook beat expectations, surging over 9% in after-hours trading.

On Nov. 4 that, according to Jinshi Data, AMD posted revenue of $13.38 billion for the third quarter of 2026, a 45% year-over-year increase, exceeding the market expectation of $13.09 billion; adjusted EPS reached $2.09, surpassing forecasts of $1.95. Data center business revenue nearly doubled year over year to $8.5 billion, accounting for 64% of total revenue, up from 47% in the same period last year.

AMD projects fourth-quarter revenue of approximately $17 billion, above the market estimate of $16.2 billion to $16.3 billion, but provides gross margin guidance of 55%, which is below the market expectation of 55.3%. CEO Lisa Su noted that demand for data center processors is expected to accelerate further, and the company is fully capable of meeting AI chip demand.

After the earnings report, AMD shares gained over 9% in after-hours trading, driving semiconductor stocks such as Nvidia and SK Hynix higher. Hit by tight memory chip supply and price increases, revenue from the PC and Gaming segment declined 8% year over year to $3.7 billion, with gaming revenue dropping 40%.