Advanced Micro Devices (AMD) has reported third-quarter financial results that beat Wall Street expectations.
The company, which designs microchips and processors, reported earnings per share (EPS) of $1.20 U.S. That was ahead of the consensus estimate of $1.16 U.S.
Revenue in the period totaled $9.25 billion U.S., which topped the $8.74 billion U.S. that had been forecast on Wall Street. Sales were up 36% from a year earlier.
While the Q3 numbers were strong, AMD provided margin guidance that was inline with consensus estimates, sending the stock down 5% in extended trading.
Management said that for the current fourth quarter they expect $9.6 billion U.S. in revenue, or 25% growth. The guidance is above the $9.15 billion U.S. consensus estimate.
But AMD said it sees an adjusted gross margin of 54.5% for the quarter, meeting forecasts.
AMD, which is trying to keep-up with Nvidia in the market for artificial intelligence (A.I.) microchips, said the guidance does not include revenue from shipments to China.
In recent weeks, AMD announced a deal with privately held OpenAI that could see the A.I. startup company take a 10% stake in the chipmaker.
Also in October, Oracle (ORCL) announced plans to deploy 50,000 AMD A.I. microchips in its cloud computing infrastructure starting in 2026.
Those developments sent AMD’s stock soaring. Prior to today (Nov. 5), AMD’s shares had gained 107% this year and were trading at $250.05 U.S. each.
