{"id":163405,"date":"2025-11-05T01:50:06","date_gmt":"2025-11-05T01:50:06","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/163405\/"},"modified":"2025-11-05T01:50:06","modified_gmt":"2025-11-05T01:50:06","slug":"amd-forecasts-fourth-quarter-revenue-above-estimates-on-strong-ai-chip-demand","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/163405\/","title":{"rendered":"AMD forecasts fourth-quarter revenue above estimates on strong AI chip demand"},"content":{"rendered":"<ul data-testid=\"Summary\" class=\"summary-module__summary__QjADA\">\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">AMD reports adjusted gross margins of 54%, ahead of Wall Street expectations<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">AI chip demand boosts AMD&#8217;s data center revenue<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">AMD&#8217;s PC chip sales jumped 46% to $2.8 billion, ahead of estimates<\/li>\n<\/ul>\n<p>Nov 4 (Reuters) &#8211; Advanced Micro Devices <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/companies\/AMD.O\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(AMD.O), opens new tab<\/a> forecast fourth-quarter revenue above market estimates on Tuesday, betting on the multibillion-dollar expansions of data center infrastructure to boost demand for its artificial intelligence chips.AMD has received significant investments in AI hardware from companies such as ChatGPT maker OpenAI and the U.S. Department of Energy, as investors <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/legal\/transactional\/great-ai-buildout-shows-no-sign-slowing-2025-10-31\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">expect spending on advanced processors will continue<\/a>. But fears remain that the AI boom has created mounting risks as it is still unclear whether the investments will generate the cash needed to sustain expectations.<\/p>\n<p data-testid=\"promo-box\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf article-body-module__promo-box__hVl8h\"> Sign up  <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/business\/amd-forecasts-fourth-quarter-revenue-above-estimates-2025-11-04\/undefined?location=article-paragraph&amp;redirectUrl=%2Fbusiness%2Famd-forecasts-fourth-quarter-revenue-above-estimates-2025-11-04%2F\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">here.<\/a><\/p>\n<p>The company expects revenue of about $9.6 billion for the quarter, plus or minus $300 million, compared with analysts&#8217; average estimate of $9.15 billion, according to data compiled by LSEG.<\/p>\n<p>The company&#8217;s shares were down about 3% in choppy extended trading. Its shares have more than doubled in value this year, with AMD&#8217;s stock gains outpacing those of market leader Nvidia <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/companies\/NVDA.O\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(NVDA.O), opens new tab<\/a>, even as the larger rival&#8217;s <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/business\/nvidia-poised-record-5-trillion-market-valuation-2025-10-29\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">market valuation scaled the $5 trillion mark<\/a>.<\/p>\n<p>AMD&#8217;s shares may be falling in extended trading because short-term traders could be taking profit, said Michael Schulman, chief investment officer at Running Point Capital. Investors are concerned about the overall economy and chip stock valuations that may take time to grow into, he said.<\/p>\n<p>AMD reported third-quarter sales of $9.25 billion, compared with analysts&#8217; average estimate of $8.74 billion.<\/p>\n<p>Fears of an AI bubble have lately rippled through Wall Street and AMD&#8217;s results were keenly anticipated.<\/p>\n<p>In AMD&#8217;s key data center segment, which houses its AI chips, revenue in the September quarter rose 22% to $4.3 billion, beating estimates of $4.09 billion.<\/p>\n<p>In a conference call after AMD released its results, executives said it had received licenses to sell modified versions of its MI300 series of AI chips in China but has not begun sales. Nvidia has also received licenses to sell versions of its advanced AI chips in China.<\/p>\n<p>Tech giants have all consistently committed to investing heavily in AI hardware, with a large portion of this spending funneled to chips, benefiting suppliers like AMD.<\/p>\n<p>AMD customer Microsoft <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/companies\/MSFT.O\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(MSFT.O), opens new tab<\/a> reported a <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/business\/amd-forecasts-fourth-quarter-revenue-above-estimates-2025-11-04\/search\/nL4N3WA2GZ\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">record, opens new tab<\/a> capital expenditure of nearly $35 billion for its fiscal first quarter last month, with roughly half of this spent primarily on chips.Alongside major Big Tech spending on AI chips, the intense focus on expanding data center footprints has also increased demand for server central processing units (CPUs) &#8211; a market where AMD has consistently been gaining share against Intel <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/companies\/INTC.O\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(INTC.O), opens new tab<\/a>.<\/p>\n<p>Analysts widely expect this to boost sales of AMD&#8217;s traditional data center chips which are used alongside AI GPUs in servers.<\/p>\n<p>Sales in the client segment, which caters to the personal computer market, rose 46% to $2.8 billion in the third quarter.<\/p>\n<p>End-market demand in the PC market has risen as consumers upgrade to AI-enabled PCs while a Windows upgrade cycle has further spurred sales.<\/p>\n<p>Preliminary results from research firm Gartner show an 8% boost in worldwide third-quarter PC shipments.<\/p>\n<p>OPENAI DEAL<\/p>\n<p>For the fourth quarter, AMD expects adjusted gross margin of 54%, compared with estimates of 54.5%. In the third quarter, it recorded an adjusted gross margin of 54%, which slightly topped estimates.<\/p>\n<p>At the same time, AMD is expanding production of its latest chips to meet swelling demand and has also scaled manufacturing up to full AI systems, following suit after Nvidia, resulting in a costly ramp-up.<\/p>\n<p>Adjusted for stock-based compensation among other items, AMD reported per-share profit of $1.20 in the third quarter, beating estimates of $1.16.<\/p>\n<p>AMD last month said it would supply AI chips to OpenAI in a <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/business\/amd-signs-ai-chip-supply-deal-with-openai-gives-it-option-take-10-stake-2025-10-06\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">multi-year deal<\/a> that would bring in tens of billions of dollars in annual revenue and give the startup the option to buy up to roughly 10% of the chipmaker.<\/p>\n<p>The deal covers the deployment of hundreds of thousands of AMD&#8217;s graphics processing units (GPUs), roughly equivalent to the energy needs of 5 million U.S. households, or about three times the amount of power produced by the Hoover Dam.<\/p>\n<p>This has raised optimism around AMD&#8217;s position in the unrelenting race to build the fastest, most widely adopted AI chips.<\/p>\n<p>However, Nvidia&#8217;s dominance of the lucrative GPU industry is still largely secure, analysts say, even as AMD competes for a bigger piece of the AI chip pie.<\/p>\n<p data-testid=\"SignOff\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__extra_small__8Buss body-module__full_width__kCIGb body-module__extra_small_body__Bfz20 sign-off-module__text__LQAMP\">Reporting by Max A. Cherney in San Francisco and Arsheeya Bajwa in New Delhi; Editing by Sriraj Kalluvila, Matthew Lewis and Christian Schmollinger<\/p>\n<p data-testid=\"Body\" dir=\"ltr\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf article-body-module__element__5eCce article-body-module__trust-badge__5mS3f\">Our Standards: <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.thomsonreuters.com\/en\/about-us\/trust-principles.html\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__medium__2Rl30 text-module__small__sph8i link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n<p><a href=\"https:\/\/www.reutersagency.com\/en\/licensereuterscontent\/?utm_medium=rcom-article-media&amp;utm_campaign=rcom-rcp-lead\" target=\"_blank\" dir=\"ltr\" class=\"button-module__link__A3sD0 button-module__secondary__70gBu button-module__round__QDFgq button-module__w_auto__Sem-F\" data-testid=\"LicenceContentButton\" rel=\"nofollow noopener\">Purchase Licensing Rights<\/a><a data-testid=\"AuthorBioImageLink\" class=\"author-bio-module__author-image__jcaG3\" href=\"https:\/\/www.reuters.com\/authors\/max-a-cherney\/\" referrerpolicy=\"no-referrer-when-downgrade\" tabindex=\"-1\" rel=\"nofollow noopener\" target=\"_blank\"><\/a><\/p>\n<p data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__extra_small__8Buss body-module__base__o--Cl body-module__extra_small_body__Bfz20 author-bio-module__description__9ynkB\">Max A. Cherney is a correspondent for Reuters based in San Francisco, where he reports on the semiconductor industry and artificial intelligence. He joined Reuters in 2023 and has previously worked for Barron\u2019s magazine and its sister publication, MarketWatch. Cherney graduated from Trent University with a degree in history.<\/p>\n","protected":false},"excerpt":{"rendered":"AMD reports adjusted gross margins of 54%, ahead of Wall Street expectations AI chip demand boosts AMD&#8217;s data&hellip;\n","protected":false},"author":2,"featured_media":163406,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[261],"tags":[291,82519,82793,289,290,82499,36586,84105,8535,84433,82500,82530,82531,82529,18,45748,87651,19,17,84435,93734,82565,82524,82510,83002,82998,83003,82994,82512,84338,84457,82801,753,82,82999,30150,82534,82533,107],"class_list":{"0":"post-163405","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-amers","10":"tag-arti","11":"tag-artificial-intelligence","12":"tag-artificialintelligence","13":"tag-bact","14":"tag-biz","15":"tag-blr","16":"tag-chip","17":"tag-chip1","18":"tag-cmpny","19":"tag-destocabsm","20":"tag-destousbsm","21":"tag-destoustcm","22":"tag-eire","23":"tag-gen","24":"tag-hot","25":"tag-ie","26":"tag-ireland","27":"tag-itse","28":"tag-mlaisv","29":"tag-mtpix","30":"tag-namer","31":"tag-publ","32":"tag-pxp","33":"tag-res","34":"tag-resf","35":"tag-rulesresults","36":"tag-sci","37":"tag-semi","38":"tag-stx","39":"tag-swit","40":"tag-tech","41":"tag-technology","42":"tag-teeq","43":"tag-tmt","44":"tag-topcmb","45":"tag-topnws","46":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/115494585842848300","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/163405","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=163405"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/163405\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/163406"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=163405"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=163405"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=163405"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}