AMD's Earnings Blow Past Estimates on Strong Demand for Data Center Chips

Core Insights - Advanced Micro Devices (AMD) reported record quarterly results exceeding analysts' expectations, driven by strong demand for AI, resulting in a 36% year-over-year revenue increase to $9.25 billion in Q3 2025 [1][6] - AMD's data center segment, its largest, saw a 22% year-over-year sales increase to $4.3 billion, slightly surpassing expectations [2] - CEO Lisa Su highlighted the results as a significant step in AMD's growth trajectory, emphasizing the expanding compute franchise and scaling data center AI business [3] Financial Performance - AMD's adjusted earnings per share reached $1.20, significantly above analyst estimates [1] - The company anticipates Q4 revenue between $9.3 billion and $9.9 billion, exceeding the analyst consensus of $9.17 billion [4] - The reported results did not include revenue from AMD's MI308 AI chip shipments to China, which are expected to resume following a revenue-sharing agreement [2][4] Market Reaction - Following the earnings release, AMD shares experienced a slight decline of about 1% in extended trading, after a nearly 4% drop during the regular session due to broader market concerns about an AI bubble [4] - Despite the recent stock fluctuations, AMD's shares have more than doubled in value throughout the year [4]