AMD stock rises after Q3 earnings beat, as data center revenue climbs 97%

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   AMD Stock Rises After Q3 Earnings Beat and 97% Data Center Revenue Surge

   Advanced Micro Devices shares climbed following a third-quarter earnings beat driven by a surge in data center revenue. Data center sales nearly doubled, rising 97 percent as the semiconductor company pivots to a data center first status. The strong quarterly report helped chip stocks rebound from a steep market selloff earlier in the week. Analysts point to the artificial intelligence boom as a primary driver, putting AMD on track to outsell Intel for the first time.

   Why it matters

   Headquartered in Santa Clara, California, Advanced Micro Devices develops central processing units, graphics processing units, and high-performance computing components for servers, personal computers, and embedded systems. The company has increasingly expanded its focus into data centers and high-performance computing markets over recent years. This quarterly performance highlights the growing financial weight of the artificial intelligence infrastructure boom on major chipmakers.

   What is confirmed

   • Advanced Micro Devices reported third-quarter earnings that beat Wall Street expectations.
   • Data center revenue climbed 97 percent during the third quarter.
   • AMD stock jumped following the earnings report, contributing to a broader rebound in chip stocks.

   Still unconfirmed

   • AMD is on track to outsell Intel for the first time due to its artificial intelligence boom.
   • AMD has a rich valuation and thin cash flow following its record quarter.

   What to watch next

   • Analyst revisions to AMD price targets and long-term financial forecasts
   • Sustained performance of chip stocks following the recent market selloff and rebound
   Sources used for this update (14)

   1. ir.amd.com — Advanced Micro Devices, Inc. (AMD)
   2. en.wikipedia.org — AMD - Wikipedia
   3. finance.yahoo.com — Advanced Micro Devices, Inc. (AMD) - Yahoo Finance
   4. newsroom.amd.com — AMD Newsroom
   5. Bloomberg — AMD Needs a Huge Outlook to Avoid Intel’s Fate as AI Fears Rise
   6. Yahoo Finance — AMD to report Q3 results as chip stocks rebound following last week's steep selloff
   7. CNBC — AMD stock jumps 7% on earnings as data center revenue nearly doubles
   8. WSJ — AMD Beats Wall Street Expectations as it Pivots to Data-Center First Status
   9. Yahoo Finance — AMD stock rises after Q3 earnings beat, as data center revenue climbs 97%
   10. MarketWatch — AMD’s stock jumps after earnings. Here’s what investors need to know.
   11. CNBC — AMD stock jumps 8% on earnings as data center revenue nearly doubles
   12. Yahoo Finance — AMD’s AI Boom Puts It On Track To Outsell Intel For The First Time – Analysts See More Room To Grow
   confidence 95%