Advanced Micro Devices (NASDAQ:AMD) reported third-quarter earnings that matched expectations, but shares fell more than 7% in after-hours trading as the company’s fourth-quarter revenue outlook came in below analyst estimates.
AMD posted adjusted earnings per share of $0.92 for Q3, in line with projections, while revenue reached $6.82 billion, surpassing the anticipated $6.71 billion and marking a 22% year-over-year increase. The strong results were driven by record sales of EPYC and Instinct data center products, alongside robust demand for Ryzen PC processors.
However, AMD’s Q4 revenue guidance, set at $7.5 billion plus or minus $300 million, fell short of investor hopes, with the midpoint below the Street estimate of $7.55 billion.
The Data Center segment was a bright spot, with revenue more than doubling year-over-year to $3.5 billion, while the Client segment saw a 29% rise, reaching $1.9 billion. In contrast, the Gaming segment experienced a steep 69% decline, with revenue dropping to $462 million, dampening overall growth momentum.