AMD beats Q3 estimates on top and bottom line, offers strong Q4 guidance

Core Insights - Advanced Micro Devices (AMD) reported Q3 earnings that exceeded analysts' expectations for both earnings and revenue, with strong guidance for Q4 [1][2] - The company anticipates Q4 revenue between $9.3 billion and $9.9 billion, surpassing Wall Street's expectation of $9.21 billion [1] Financial Performance - AMD achieved earnings per share (EPS) of $1.20 on revenue of $9.25 billion, compared to analyst expectations of EPS $1.17 on revenue of $8.74 billion [3] - Data center revenue reached $4.3 billion, exceeding the expected $4.1 billion, and up from $3.5 billion in the same quarter last year [3] - The client segment, which includes laptop and desktop chip sales, generated $2.9 billion in revenue, surpassing expectations of $2.6 billion [3] Gaming and AI Developments - The gaming division reported revenue of $1.3 billion, exceeding the anticipated $1.1 billion [4] - AMD has secured significant AI chip deals with OpenAI and Oracle, including a deal to provide OpenAI with up to 6 gigawatts of GPUs [4][5] - Under the Oracle agreement, AMD will deploy up to 50,000 GPUs across Oracle's data centers [5] Stock Performance - AMD's stock has surged 53% over the past month, with a year-to-date increase of 108% and a 79% rise over the past 12 months [5] - Despite strong performance, AMD's market cap is $418 billion, significantly trailing Nvidia, which has a market cap exceeding $5 trillion [6]