Revenue was $13.38 billion, against the $13.09 billion analysts expected, CNBC reports, citing LSEG. Adjusted earnings were $2.09 a share, against $1.95 expected, CNBC says. Investor's Business Daily also reported adjusted earnings of $2.09 a share on sales of $13.38 billion.

AMD's release says revenue grew 45% to a record $13.4 billion. Data Center segment revenue was a record $8.5 billion, up 97% from a year earlier, the release says. Client and Gaming segment revenue was $3.7 billion, down 8%. Gaming revenue alone fell 40%, CNBC reports.

Under standard accounting rules, gross margin was 54% and diluted earnings were $1.46 a share, the release says.

“We delivered a record quarter with revenue exceeding the high end of our guidance as Data Center segment sales nearly doubled year-over-year,” chief executive Lisa Su said in the release.

For the fourth quarter, AMD expects revenue of about $17 billion, plus or minus 3%, the release says. CNBC says that beat the $16.2 billion average analyst estimate, according to LSEG.

AMD sees its gross margin for the fourth quarter at 55%, slightly below the average estimate of 55.3%, CNBC reports, citing StreetAccount.

Su said on the earnings call that she expects server revenue to double in 2027, CNBC reports. The data center unit now makes up 64% of AMD's revenue, up from 47% a year ago, CNBC says.

AMD's stock is up about 125% this year, CNBC reports. But it fell three days in a row before Tuesday “amid an industrywide sell-off tied to fears about overspending on AI,” CNBC says.

What we know: AMD beat estimates for the quarter and gave a sales forecast above what analysts expected.
What we don't: Whether demand for AI chips will hold up amid worries about overspending.