AMD late on Tuesday reported its highest quarterly revenue ever as demand for its Epyc data center processors and Instinct AI accelerators nearly doubled year-over year and sales of its products for client systems were down only modestly despite high memory prices and other headwinds.
As increasing sales of data center hardware more than offset declines in the client realms, AMD's profitability continues to improve. Perhaps the most striking announcement AMD made is that it expects its Q4 revenue to reach approximately $17 billion, which would put it ahead of Intel for the first time in history.
AMD's third-quarter revenue reached $13.377 billion, a huge increase from $9.25 billion in the same quarter a year earlier and $11.54 billion in the previous quarter. The company's gross margin was 54% during the quarter, and net income increased by 95% to $2.43 billion. Diluted earnings per share reached $1.46, compared with $0.75 in the same quarter last year.
AMD's Data Center business was the main driver of its growth as the unit's sales reached a record $8.55 billion, up 97% from $4.34 billion a year earlier and 27% sequentially. The unit's operating income surged by 168% to $2.88 billion, while operating margin expanded from 25% to 34%.
The company attributed the results to strong demand for its latest Epyc processors and the launch of Instinct MI455X AI accelerators, which power its Helios rack-scale systems. Specifically, AMD noted that Anthropic, Meta, Microsoft, OpenAI, and Oracle Cloud Infrastructure are already running workloads on their first Helios systems.
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