AMD earnings show data center strength driving upside

morningstar.com —

Advanced Micro Devices reported third-quarter revenue of $13.4 billion, up 45% year over year, and forecast fourth-quarter revenue of $17.0 billion, exceeding analyst expectations, driven by strong data center demand. The company expects data center strength, including AI accelerators and server CPUs, to offset softening PC demand, with GPU revenue projected to surpass server CPU revenue for the first time in the fourth quarter. Morningstar raised its fair value estimate for AMD to $570 from $530, citing higher server CPU and GPU forecasts, though shares remain below that level after recent declines tied to Intel's weak earnings.


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