Advanced Micro Devices forecast $17 billion in fourth-quarter revenue, above the analyst average, as data-center growth helps offset weaker PC sales amid a tighter memory market for computer makers.
In a Nov. 3 statement, AMD gave a forecast range of 3% above or below $17 billion. Bloomberg reported that the average analyst estimate was $16.3 billion. EconoTimes' earlier coverage of the revenue projection described it as pointing to 66% year-over-year growth.
AMD reported third-quarter revenue of $13.4 billion, up 45% from a year earlier. Its Data Center business brought in $8.5 billion, a 97% increase. PC and gaming-related sales declined 8% to $3.7 billion.
The growth also reflects AMD's position in the competition to supply AI infrastructure. Bloomberg described the company as a significant processor supplier to AI facilities, while noting it remains behind Nvidia in AI accelerators. AMD is introducing new processor and accelerator lines and is competing with Nvidia through its Helios server design, Bloomberg reported.
AMD expects fourth-quarter gross margin of about 55%, down from 56% in the prior quarter. That forecast signals a one-percentage-point decline even as the company projects higher revenue.
Bloomberg attributed strain in the PC market to rising memory-chip costs and demand from data centers. AI servers use large volumes of memory, reducing supply available for computers; the resulting higher costs and slower production have weighed on consumer demand, the outlet reported.
Bloomberg reported that AMD shares added roughly 6% in late trading following the earnings release. The outlet said the outlook could ease investor doubts about the durability of AI spending, after recent concerns had weighed on technology shares. It also pointed to Intel's earnings setback the previous week, after which the rival's shares recorded their steepest decline in decades.
