AMD Issues Upbeat Fourth-Quarter Revenue Guidance Following Third-Quarter Beat

04:57 PM EST, 11/03/2026 (MT Newswires) -- Advanced Micro Devices (AMD) issued a stronger-than-expected fourth-quarter revenue outlook late Tuesday as third-quarter results topped Wall Street estimates, driven by strength in its data center business. For the fourth quarter, AMD expects revenue of $17 billion, plus or minus 3%. Analysts polled by FactSet expect $16.29 billion. The midpoint of the guidance represents an annual increase of 66%. Adjusted gross margin is pegged at roughly 55%. The metric rose by 2 percentage points to 56% in the third quarter. "Demand for our Instinct and EPYC products continued to strengthen, and we expect growth to accelerate further in the fourth quarter as we scale Helios and 'Venice' production," Chief Executive Lisa Su said in a statement. Helios is AMD's fully integrated AI infrastructure, while its next-generation EPYC processor is codenamed Venice. AMD shares were up 9.3% in after-hours trading and had gained nearly 126% this year through Tuesday close. The company's adjusted earnings rose to $2.09 a share for the quarter ended Sept. 26 from $1.20 the year before, it said late Tuesday. The consensus on FactSet was for non-GAAP EPS of $1.95. Revenue jumped 45% to $13.38 billion, exceeding the Street's view of $13.1 billion. AMD's data center revenue soared to $8.55 billion in the third quarter from $4.34 billion last year, driven by strong demand for EPYC processors and the launch of Instinct MI450 series graphics processing units. "We delivered a record quarter with revenue exceeding the high end of our guidance as data center segment sales nearly doubled year-over-year," Su added. The client segment's revenue rose 7% to $2.95 billion buoyed by Ryzen mobile processors, while gaming revenue plunged 40%. The embedded division logged revenue growth of 29% to $1.11 billion, supported by growth in aerospace and defense, automotive, communications and industrial end markets. Wedbush Securities said last month that it expected AMD to report results at or above guidance as server CPU demand could drive potential upside. "We believe any shift to AMD's outlook will be higher with compute and accelerator demand seemingly outrunning supply," the brokerage said. Last week, Intel (INTC) reported better-than-expected third-quarter adjusted earnings as revenue missed estimates amid concerns that rising memory prices and supply constraints could weaken the personal computer market. Tech bellwether Nvidia (NVDA) is expected to report its latest financial results later this month, while chipmaker Broadcom (AVGO) is scheduled to release its earnings in December.