SANTA CLARA, Calif. — Data Center is carrying AMD now, and Tuesday’s numbers showed by how much. Revenue for the third quarter came in at $13.4 billion, a record and 45% higher than a year ago, according to the company’s results release.
Nearly two-thirds of that money came from one segment. Data Center revenue hit $8.5 billion, up 97% year over year, on demand for EPYC server processors and the first sales of the new Instinct MI450 Series GPUs.
“We delivered a record quarter with revenue exceeding the high end of our guidance as Data Center segment sales nearly doubled year-over-year.”
Profit followed the same direction. Non-GAAP earnings were $2.09 a share, up 74%. GAAP net income was $2.4 billion, or $1.46 a share, with a 54% gross margin.
The rest of the business was quieter. Client and Gaming revenue totaled $3.7 billion, down 8%. Inside that figure, client sales rose 7% to $2.9 billion on Ryzen mobile processors, while gaming dropped 40% to $773 million as semi-custom and graphics sales fell.
Embedded, the smallest segment, grew 29% to $1.1 billion. The company pointed to aerospace and defense, automotive, communications and industrial customers.
Then came the outlook, and it was the bigger number. AMD expects fourth-quarter revenue of around $17 billion, give or take 3% — roughly 66% above a year earlier and 27% above the quarter just reported. Non-GAAP gross margin should be about 55%, it said.
Jean Hu, the chief financial officer, tied the earnings jump to scale in the Data Center business, saying the growth showed the operating leverage in AMD’s business model.
The release named Anthropic, Meta, Microsoft, OpenAI and Oracle Cloud Infrastructure as running workloads on the first AMD Helios rack-scale systems, and noted agreements to acquire World Labs and Taalas. AMD planned to walk analysts through the results on a call at 5 p.m. ET on Tuesday.
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