UPDATED Wednesday: AMD reported record server processor sales for its third quarter, helping drive $5.8 billion in revenue, an increase of 4% over the same period in 2022. The company’s stock climbed 2.4% during the day Tuesday, then dipped briefly 4% after market close, possibly a reflection of declines in gaming and embedded sales. On Wednesday, the share price surged by 8%.
“Our data center business is on a significant growth trajectory based on the strength of our EPYC CPU portfolio and the ramp of Instinct MI300 accelerators shipments to support multiple deployments with hyperscale, enterprise and AI customers,” CEO Lisa Su said in a statement on Tuesday.
The company also expects to see strong data center grow in the current fourth quarter, according to CFO Jean Hu. AMD expects $2 billion in GPU sales in 2024, atop $400,000 in the fourth quarter.
Hu added there will be continued momentum in sales of client chips, but that momentum will be offset by lower sales in gaming and softening demand in embedded.
Data Center revenue was $1.6 billion for the quarter, which was flat YoY, but up by 21% sequentially with customer adoption of 4th Gen AMD EPYC CPUs. That growth was offset by a decline in adaptive SoC data center products, however.
The company added its AMD Instinct MI300A and MI300 X GPUs are on track for volume production in the fourth quarter.
The client segment also did well , up 42% YoY to $1.5 billion, primarily from Ryzen mobile processor sales.
Gaming was down 8% YoY, while embedded was down 5%.
Fourth quarter revenue is expected to be $6.1 billion, representing YoY growth of 9%.
This story was updated from its original version on Tuesday, October 31.