AMD stock jumps 5% on strong Q3 results as data center revenue nearly doubles

AMD shares rose about 5% in after-hours trading Tuesday after the chipmaker reported better-than-expected third-quarter results and issued an optimistic revenue outlook, easing concerns about the sustainability of artificial intelligence spending following Intel's disappointing forecast last week. AMD reported quarterly revenue of $13.38 billion, up 45% year-over-year and above analyst estimates, with adjusted earnings per share of $2.09 beating the consensus of $1.95. Data center revenue nearly doubled to a record $8.55 billion, driven by strong demand for EPYC server processors and Instinct AI accelerators, offsetting weakness in PC and gaming segments. CEO Lisa Su forecast total revenue growth of more than 80% in 2027, with data center products expected to account for about 80% of sales next year. The company also guided fourth-quarter revenue to approximately $17 billion, implying about 66% annual growth.