Advanced Micro Devices reported third-quarter revenue of $13.4 billion Tuesday, topping the high end of the guidance it had given Wall Street just three months earlier and extending the chipmaker's run as one of the AI boom's biggest winners. The results, filed with the Securities and Exchange Commission, showed revenue up 35.6 percent from a year earlier.

The company's GAAP gross margin came in at 54 percent, with operating income of $2.8 billion and net income of $2.4 billion, or $1.46 per diluted share. On an adjusted, non-GAAP basis — the figures Wall Street tends to focus on — AMD posted a 56 percent gross margin, $3.9 billion in operating income, $3.5 billion in net income and diluted earnings of $2.09 per share. AMD had told investors in the summer to expect roughly $13.0 billion in revenue, plus or minus $300 million, for the quarter; Tuesday's print cleared even the top of that range.

Data Centers Keep Carrying the Load

The results extend a string of blowout quarters for AMD, which has ridden surging demand for its Instinct AI accelerators and EPYC server processors as cloud providers and AI labs race to build out data-center capacity. CEO Lisa Su struck a confident tone on the earnings call, telling analysts she expects growth to "accelerate further" in the fourth quarter. CFO Jean Hu echoed that outlook, describing AMD's fourth-quarter guidance as reflecting "accelerating revenue and earnings growth."

"WE EXPECT GROWTH TO ACCELERATE FURTHER IN THE FOURTH QUARTER."

The quarter adds to a run of chip-sector results that have kept Wall Street fixated on whether the AI spending cycle can keep justifying sky-high valuations. AMD's own stock has been volatile this year, swinging on both blowout results and bouts of investor skepticism about how long hyperscalers will keep pouring money into AI infrastructure — the same tension that has whipsawed shares of rivals like Nvidia and Palantir in recent sessions.

AMD did not break out Instinct GPU revenue specifically in Tuesday's release, but executives pointed to continued share gains in AI accelerators and server chips as the primary driver of the beat, according to a review of the filing by financial data site rallies.ai. A separate analysis from Sci-Tech Today noted that while AMD cleared its revenue targets comfortably, its gross-margin guidance merely met — rather than exceeded — analyst expectations, a detail some investors flagged as the quarter's one soft spot.

AMD's fourth-quarter guidance, issued alongside the results, calls for continued acceleration in both revenue and profit, setting up a closely watched holiday-quarter report early next year as the company looks to close the gap with Nvidia in the data-center AI race.