Advanced Micro Devices (NASDAQ:AMD) Posts Quarterly Earnings Results, Beats Expectations By $0.14 EPS

Advanced Micro Devices (NASDAQ:AMD) issued its quarterly earnings data on Tuesday. The semiconductor manufacturer reported $2.09 EPS for the quarter, beating the consensus estimate of $1.95 by $0.14, FiscalAI reports. The firm had revenue of $13.38 billion during the quarter, compared to analyst estimates of $13.10 billion. Advanced Micro Devices had a return on equity of 14.34% and a net margin of 16.77%. The business’s revenue for the quarter was up 44.7% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.20 EPS.

Here are the key takeaways from Advanced Micro Devices’ conference call:

• Record third-quarter results: Revenue rose 45% year over year to $13.4 billion, while non-GAAP EPS increased 74% to $2.09. Data center revenue nearly doubled to $8.5 billion, lifting operating margin to 29%.
• AMD raised its outlook for 2027, expecting total revenue to grow more than 80%, server revenue to double, and data center to contribute over 80% of company revenue. The company cited strong demand for EPYC Venice CPUs, Instinct GPUs, and Helios rack-scale systems.
• Helios and MI450 deployments are ramping, with major cloud providers and AI customers bringing systems online. Management said data center AI revenue will surpass server revenue in the fourth quarter and that demand currently exceeds available supply.
• Embedded revenue increased 29% year over year to $1.1 billion, marking a fourth consecutive quarter of accelerating growth. AMD also expects operating leverage to continue, with 2027 operating-expense growth below half of expected revenue growth.
• Client and gaming revenue declined 8% year over year, including a 40% drop in gaming from lower semi-custom console sales. AMD expects the PC market to decline by a double-digit percentage in 2027, while higher memory and component costs are already weakening demand.

Advanced Micro Devices Stock Performance

Shares of NASDAQ AMD traded down $61.78 during trading on Thursday, reaching $427.00. 9,825,626 shares of the company traded hands, compared to its average volume of 31,657,877. The stock has a market cap of $697.06 billion, a P/E ratio of 92.66, a PEG ratio of 4.97 and a beta of 2.49. Advanced Micro Devices has a 12-month low of $188.22 and a 12-month high of $658.52. The firm’s fifty day simple moving average is $548.90 and its 200 day simple moving average is $413.03. The company has a current ratio of 2.61, a quick ratio of 1.91 and a debt-to-equity ratio of 0.03.

Insider Activity

In related news, EVP Jean X. Hu sold 15,000 shares of the company’s stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $474.08, for a total value of $7,111,200.00. Following the completion of the transaction, the executive vice president owned 160,979 shares of the company’s stock, valued at approximately $76,316,924.32. This represents a 8.52% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mark D. Papermaster sold 28,811 shares of the stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $471.87, for a total value of $13,595,046.57. Following the transaction, the executive vice president owned 1,261,461 shares in the company, valued at $595,245,602.07. This trade represents a 2.23% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 231,100 shares of company stock worth $114,867,400. 0.50% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on AMD. CLSA reaffirmed an “outperform” rating and set a $710.00 target price on shares of Advanced Micro Devices in a research report on Wednesday, September 9th. Jefferies Financial Group reiterated a “buy” rating on shares of Advanced Micro Devices in a research note on Thursday, October 29th. HSBC reissued a “hold” rating and issued a $540.00 price target on shares of Advanced Micro Devices in a report on Thursday. Bank of America dropped their price target on Advanced Micro Devices from $720.00 to $650.00 and set a “buy” rating on the stock in a research note on Wednesday. Finally, Stifel Nicolaus upped their price objective on shares of Advanced Micro Devices from $700.00 to $725.00 and gave the company a “buy” rating in a report on Wednesday. Three equities research analysts have rated the stock with a Strong Buy rating, thirty-two have assigned a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $633.17.

Advanced Micro Devices News Roundup

Here are the key news stories impacting Advanced Micro Devices this week:

• Positive Sentiment: AMD’s third-quarter results beat expectations, with revenue of $13.38 billion and EPS of $2.09. Data Center revenue rose about 97% year over year, and management forecast fourth-quarter revenue of roughly $17 billion and revenue growth above 80% in 2027. The results and outlook reinforce the AI-growth case behind the stock’s recent strength. Reuters: AMD shares jump as AI-driven data-center strength fuels growth outlook
• Positive Sentiment: ETFs recorded $60.2 million of AMD purchases on Tuesday, with 40 funds buying shares versus 19 selling—a supportive signal of institutional demand. ETFs Are Buying Advanced Micro Devices
• Positive Sentiment: AMD, IBM and Oak Ridge National Laboratory launched a platform combining quantum and high-performance computing for quantum error correction. It adds a longer-term opportunity, though it is not an immediate earnings driver. Reuters: Quantum error correction platform launch
• Neutral Sentiment: Fund flows were not uniformly positive: the SOXX semiconductor ETF sold AMD and Nvidia as part of a broader $356.9 million portfolio reduction, trimming 29 holdings and adding none. SOXX sells AMD and Nvidia
• Negative Sentiment: Valuation concerns may limit further gains after the earnings-driven advance. Commentary also highlights that AMD needs stronger software capabilities to compete with Nvidia’s AI ecosystem, while Intel and custom chips add competitive pressure. Morningstar on AMD’s software hurdle and valuation

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc (NASDAQ: AMD) is a global semiconductor company that designs high-performance computing, graphics and adaptive computing products. Its offerings serve data centers, personal computers, gaming systems, embedded markets and other specialized applications.

AMD’s product portfolio includes Ryzen processors for desktop and notebook computers, EPYC server processors, Radeon graphics processing units, and Instinct accelerators for artificial intelligence and high-performance computing.