AMD Shares Jump 7% as Data Center Revenue Nearly Doubles
- AMD stock rose 7% in extended trading on November 3, 2026.
- Q3 revenue reached $13.4 billion, a 45% year-over-year increase.
- Data center revenue nearly doubled to $8.55 billion.
- AMD forecasts fourth-quarter revenue of approximately $17 billion.
AMD shares increased 7% in extended trading on Tuesday, November 3, 2026, after the company reported third-quarter financial results that exceeded Wall Street expectations. Tradingkey.com reported the shares rose 7% after hours, while xtb.com noted a 7% increase following the release of the earnings report. Other reports indicated the shares jumped 8% in extended trading.
The stock reached a price of $519.49 in after-hours trading. This surge follows a 23% decline in the stock price over the preceding month. Before the rally on Tuesday, AMD shares experienced three consecutive days of losses.
CNBC reported the stock is up 129% year-to-date, while a separate mention in the same report put the increase at approximately 125% this year. The company reported a 97% year-over-year increase in Q3 data center revenue and 74% EPS growth. Intel reported a 78% increase in third-quarter data center revenue, though its stock price declined 29% on Friday due to weak guidance.
Record revenue and earnings per share growth
AMD reported record third-quarter revenue of $13.4 billion, a 45% year-over-year increase. Finance.yahoo.com and xtb.com reported revenue of $13.40 billion, while newsbytesapp.com reported $13.38 billion. This revenue grew from $9.25 billion in the same period last year. Xtb.com reported the revenue exceeded analyst expectations of $13.09 billion.
This non-GAAP diluted earnings per share figure exceeded the $1.97 estimate by $0.12.
Data center segment drives business expansion
The data center segment generated $8.546 billion in revenue, a 97% year-over-year increase that beat the $8.200 billion estimate by $346 million. Tradingkey.com, finance.yahoo.com, and xtb.com reported that revenue for the division nearly doubled to $8.55 billion.
Strong demand for MI300 series AI accelerators drove this growth, according to techbuzz.ai.
The data center business now accounts for 64% of total revenue, compared to 47% a year ago, according to cnbc.com and newsbytesapp.com. Xtb.com noted this segment represents nearly two-thirds of total sales, up from 58% in the previous quarter.
Mixed results across client, gaming, and embedded segments
Client segment revenue reached $2.949 billion, a 7% year-over-year increase. Xtb.com reported client revenue at $2.95 billion.
Gaming revenue fell 40% year-over-year to $773 million. Cnbc.com reported that combined revenue for the PC and gaming chip segment declined 8% year-over-year to $3.7 billion.
This segment reported an operating income of $453 million.
Xtb.com also reported a 45% increase in total revenue.
Gross margins improve while free cash flow misses estimates
Non-GAAP gross margin reached 56% in the third quarter, a 2 percentage point increase year-over-year. The company reported a GAAP gross margin of 54%, also a 2 percentage point increase.
Xtb.com reported the adjusted operating margin reached approximately 29.3%. The company forecasts a non-GAAP gross margin of approximately 55% for the fourth quarter.
Free cash flow totaled $554 million for the quarter. This result missed market expectations of $1.970 billion by 71.88% and fell below the $1.530 billion reported in the same period last year.
The free cash flow margin was approximately 4.1%. Xtb.com noted the $554 million total was significantly lower than the $1.05 billion forecast.
Strategic partnerships and AI infrastructure investments
Advanced Micro Devices committed to an investment of up to $5 billion in Anthropic to advance data center capabilities.
A single Helios rack configuration, developed with Hewlett Packard Enterprise, integrates 72 Instinct MI455X accelerators along with necessary networking and cooling infrastructure.
The company holds multiyear partnerships for this AI infrastructure with OpenAI, targeting 6 gigawatts of capacity. Anthropic plans to deploy 2 gigawatts of MI450 accelerators starting in the first half of 2027.
Fourth-quarter revenue and margin guidance
The company forecasts fourth-quarter revenue of approximately $17 billion. This guidance exceeds the average analyst estimate of $16.2 billion.
AMD expects a gross margin of 55 percent for the fourth quarter. This figure is slightly below the average analyst estimate of 55.3 percent and slightly lower than the margin reported in the third quarter.
Leadership commentary on growth and profitability
Chief Executive Officer Lisa Su stated, "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".
Frequently Asked Questions
- AMD Stock Surges 7% as AI Chip Sales Double Data Center Revenue | The Tech Buzz (techbuzz.ai)
- AMD stock jumps 7% as Q3 revenue rises 45% (newsbytesapp.com)
- AMD Q3 Data Center Revenue Jumps 97% YoY, Driving 74% EPS Growth; Shares Surge 7% After Hours (tradingkey.com)
- AMD (AMD) Q3 earnings report 2026 (cnbc.com)
- AMD data center revenue nearly doubles as Q4 outlook beats expectations (finance.yahoo.com)
- AMD shares jump 7% after stellar earnings 🔼 Will semiconductor stocks return to growth? | XTB (xtb.com)
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