AMD Earnings Beat: Data Center and AI Growth Drive Q4 Guidance

Advanced Micro Devices (AMD) reported a strong third-quarter earnings beat, with EPS of $2.09 and revenue of $13.38 billion, both exceeding analyst expectations, driven by robust data center and AI demand. The Data Center segment now accounts for 64% of AMD's revenue, with operating margins expanding to 33.7% on strong EPYC and MI450 GPU sales. Management guided Q4 revenue to $17 billion, above consensus, and projects data center revenue to exceed 80% of total by 2027. The company expects overall revenue to grow over 80% in 2027. The analyst maintains a Buy rating, recommending adding shares as long as they hold above $504.5, citing long-term resilience and AI momentum.