AMD reported record third-quarter revenues of $13.4 billion, a 45 percent increase year-over-year, driven by a surging data center business that nearly doubled in size. The data center segment posted a 97 percent year-over-year revenue increase to a record $8.5 billion, fueled by strong demand for EPYC enterprise server CPUs and the Instinct MI450 series GPUs. Meanwhile, the gaming segment cratered, posting a 40 percent revenue drop to $773 million due to lower semi-custom and graphics sales.
The Client business also grew, with Ryzen mobile chips and desktop processors reaching $2.95 billion in revenue, up 7 percent year-over-year. AMD's CFO Jean Hu outlined Q4 revenue projections of approximately $17 billion, representing potential 66 percent year-over-year growth. If realized, this would mark the first time AMD surpasses Intel's quarterly revenue in history.
Operating margins in the data center business expanded significantly, rising from 25 percent to 34 percent, with operating income surging 168 percent to $2.88 billion. The Embedded segment also grew 29 percent to $1.1 billion, driven by gains in aerospace, defense, and automotive markets.
Source: Ars Technica · Summarized by HeadlinesBriefing