On November 4 (Beijing time), AMD reported third-quarter revenue of 13.377 billion US dollars, up 45% year-on-year and ahead of expectations, with data center revenue surging 97% as the primary engine. According to 21st Century Business Herald, the stock jumped as much as 7.87% in after-hours trading.
Two product lines drove the growth: strong EPYC server CPU demand for running agents, feeding GPUs and supporting general compute, and the Instinct MI450 series GPUs as the main accelerators for AI training and inference. Chair and CEO Lisa Su said EPYC sales more than doubled in both cloud and enterprise markets; MI450 and the Helios rack-scale systems entered volume production and delivery in Q3, with first cabinets already running at Anthropic, Meta, Microsoft, OpenAI and Oracle.
The guidance is equally aggressive: with Helios ramping and sixth-generation EPYC entering production, AMD expects data center revenue to grow another ~50% quarter-on-quarter in Q4; server revenue could double in 2027, taking data center past 80% of total revenue. TrendForce's data points the same direction — AI agent and inference workloads are pushing server CPU-to-GPU ratios from 1:8 toward 1:2 and even 1:1.
The other side of the coin is structural pressure. Gaming revenue fell from 1.3 billion dollars a year ago to 773 million as memory price hikes raised system costs and pushed Microsoft and Sony to raise console prices multiple times. Free cash flow was 554 million, down ~64% and far below the 1.97 billion estimate, while inventory grew 35% — capacity and supply commitments are consuming cash. Goldman Sachs maintained Buy with a 700-dollar target; JPMorgan raised its target to 575 dollars but stayed neutral.
Near-doubling data center revenue in a single quarter confirms that AI compute demand spillover is no longer Nvidia-exclusive — a duopoly is forming. For buyers, MI450 racks inside Meta and OpenAI facilities give second-source strategies a real anchor for the first time. Whether inventory and cash-flow burn gets validated by the Q4 guidance is the next earnings checkpoint.