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Key Points
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AMD reported a 36% revenue increase to $9.25 billion in Q3 2023, exceeding analyst expectations of $8.74 billion.
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Gaming revenue surged 181% to $1.3 billion, while the data center segment grew 22% driven by high demand for EPYC CPUs.
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AMD forecasts Q4 revenue growth of 25% to $9.6 billion, plus or minus $300 million.
Advanced Micro Devices (NASDAQ: AMD) experienced significant growth in Q3 2023, with total revenue climbing to $9.25 billion, driven by a 73% surge in its client and gaming segment. Sales of desktop CPUs hit an all-time high, contributing to a 181% increase in gaming revenue as demand surged ahead of the holiday season. The data center segment also performed well, with a 22% increase in revenue attributed to strong sales of EPYC CPUs and GPUs.
Looking ahead, AMD has partnered with OpenAI, which is expected to utilize its MI450 GPUs starting in 2026, potentially generating over $100 billion in AI data center revenue. In the same quarter, AMD saw adjusted earnings per share rise to $1.20, beating the consensus estimate of $1.16, while adjusted EBITDA increased by 29% to $2.43 billion.
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