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Advanced Micro Devices (AMD) reported third-quarter 2025 revenues of $9.24 billion, with Data Center revenues accounting for $4.34 billion, up 22.3% year-over-year and 47% of total revenues. The company experienced a 34% sequential increase, driven by the demand for fifth-gen EPYC processors and Instinct MI350 GPUs, resulting in over 160 EPYC-powered instances launched by hyperscalers including Google and Microsoft Azure.
AMD anticipates Data Center revenues to continue growing at double-digit rates, forecasting fourth-quarter revenues between $9.3 billion and $9.9 billion, which would represent approximately 25% year-over-year growth. The company estimates the data center total addressable market to reach $1 trillion by 2030, indicating a compound annual growth rate (CAGR) of over 40% from the current estimate of $200 billion in 2025.
Despite strong performance, AMD faces tough competition from NVIDIA and Broadcom, which reported a staggering $51.22 billion in Data Center revenues, reflecting a 66% year-over-year increase. AMD’s stock has risen 49.9% over the last year, but its valuation remains high with a forward price/sales ratio of 8.04 compared to the sector average of 6.61.
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