AMD Shares Rise 4.53% in Premarket Trading After Earnings Report

AMD shares were up 4.53% in premarket trading at 6:58 a.m. ET Wednesday after the chipmaker reported record third-quarter revenue and near-doubling sales in its Data Center segment.

The quarter ended Sept. 26. Revenue increased 45% year over year to $13.377 billion. Data Center revenue hit a record $8.5 billion, up 97%. AMD linked the segment’s increase to EPYC processor demand and the launch of its 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,” said Dr. Lisa Su, AMD chair and CEO.

AMD posted diluted earnings per share of $1.46 under generally accepted accounting principles (GAAP) and $2.09 on a non-GAAP basis, increases of 95% and 74%, respectively. For the fourth quarter, the company projected revenue of about $17 billion, plus or minus 3%, and a non-GAAP gross margin of about 55%.

The midpoint of AMD’s revenue forecast implies about 66% growth from a year earlier.