Core Insights - Advanced Micro Devices (AMD) reported fiscal third-quarter results that surpassed Wall Street expectations, with a revenue increase of 36% year-over-year, reaching $9.25 billion [2][7] - The company anticipates fourth-quarter revenue of approximately $9.6 billion, indicating a 25% growth, which exceeds the consensus estimate of $9.15 billion [3] - AMD's stock has risen 107% year-to-date, significantly outperforming the Nasdaq's 21% increase [4] Financial Performance - Net income for the third quarter rose to $1.24 billion, or 75 cents per share, compared to $771 million, or 47 cents per share, from the previous year [2] - Client revenue reached $2.75 billion, up 46%, exceeding the consensus of $2.61 billion [6] - Revenue from gaming surged to $1.30 billion, a remarkable 181% increase, surpassing the expected $1.05 billion [6] Market Position and Partnerships - AMD is focusing on competing with Nvidia in the artificial intelligence processor market, with guidance excluding revenue from shipments of its Instinct MI308 chips to China [3] - A recent partnership with OpenAI could lead to the AI startup acquiring a 10% stake in AMD, with plans to deploy 6 gigawatts of AMD's Instinct GPUs over several years [4] - Oracle announced plans to deploy 50,000 AMD Instinct MI450 AI chips in its cloud services starting next year, indicating growing demand for AMD's AI solutions [5] Guidance and Expectations - AMD's adjusted gross margin for the fourth quarter is projected at 54.5%, aligning with market expectations [3] - The company will discuss its financial results and future outlook in a conference call with analysts [6]

Group 1 - The S&P 500 and Nasdaq reached record highs following a significant deal between OpenAI and Advanced Micro Devices (AMD) [1][2] - AMD shares surged by 23.71%, while the Nasdaq Composite rose by 0.71% to close at 22,941.67, and the S&P 500 gained 0.36% to close at 6,740.28 [2] - OpenAI is set to take a 10% stake in AMD as part of a multi-year agreement to supply chips [2] Group 2 - OpenAI plans to deploy 6 gigawatts of AMD's Instinct graphics processing units over the next few years, with the first rollout of 1 gigawatt expected in about a year [5] - The partnership with AMD is seen as a competitive move against Nvidia, which currently leads the AI chip market [4][5] - OpenAI's CEO emphasized the importance of this deal for scaling their operations to reach a broader audience [5]

Sam Altman, chief executive officer of OpenAI, left, and Lisa Su, chair and chief executive officer of Advanced Micro Devices, arrive for a Senate Commerce, Science, and Transportation Committee hearing in Washington, DC, US, on Thursday, May 8, 2025.OpenAI and Advanced Micro Devices have reached a deal that could see Sam Altman's company take a 10% stake in the chipmaker. AMD stock skyrocketed more than 25% Monday during premarket trading following the news.OpenAI will deploy 6 gigawatts of AMD's Instinct ...