AMD stock jumps 8% on earnings as data center revenue nearly doubles

Advanced Micro Devices reported third-quarter earnings on Tuesday that beat Wall Street's expectations, with revenue jump 45% and data center sales nearly doubling from a year earlier. The stock jumped 7% in extended trading.

Here's how the chipmaker did versus LSEG consensus estimates for the quarter:

Revenue increased from $9.25 billion a year earlier, AMD said in a statement .

CEO Lisa Su said in a press release that she expects growth in data center processors to "accelerate further," and that meeting demand won't be a problem.

"With our leadership product portfolio and deep customer and supply chain relationships, we are confident in our ability to sustain very strong revenue growth and expanding profitability over the coming years " Su said in a statement.

AMD's report comes days after Intel disclosed similar data center growth, with revenue in that segment up 78% in the third quarter. But the stock plummeted 29% on Friday over concerns about weak guidance and Intel's ability to meet demand .

The data center unit makes up the majority of AMD's business, accounting for 64% of overall revenue, up from 47% a year ago.

After years spent chasing Nvidia in the market for artificial intelligence graphics processing units, or GPUs, AMD's central processing units, or CPUs, are experiencing a major resurgence with the rise of agentic AI apps like Meta 's Muse. AMD's server CPUs are key for agentic apps because they power virtual machines and can run for hours on their own. Demand from agentic AI boosted AMD shares to a record in October.

AMD's stock is up about 125% this year, but it saw three consecutive days of losses before rallying on Tuesday amid an industrywide sell-off tied to fears about overspending on AI.

AMD is also a major player the in weakening PC market, which Intel blamed for its poor outlook last week. AMD and Intel are the largest makers of traditional x86 processors that power many laptops and desktops, while other laptops rely on Arm -based processors from the likes of Qualcomm and Apple.

Global PC shipments declined 4% in the second quarter from a year earlier due to soaring costs for memory and other components, according to Counterpoint Research .

AMD reports PC chip sales in a segment combined with gaming chips. Revenue in that business fell 8% from a year earlier to $3.7 billion. Gaming revenue was down 40% from a year ago.