Despite a 3% fall in after-hours trading on Tuesday, AMD's shares have increased by 67% this year. The company beat top and bottom line estimates in Q3, reporting $5.8 billion in revenue and $0.70 in earnings per share. However, its Q4 revenue forecast of $6.1 billion fell $3 million short of analysts' expectations. Both UBS and Goldman Sachs have reiterated their buy ratings for AMD.
Key takeaways:
- AMD's stock surged more than 8% following a promising projection from CEO Lisa Su, who expects chip revenue to reach around $400 million in the fourth quarter and top $2 billion next year.
- The $2 billion forecast revolves around AMD's MI300 data center chip, which is used for artificial intelligence and high-performance computing.
- AMD has secured commitments from large tech and cloud computing customers to use MI300 chips, which is expected to boost the company's data center chip revenue.
- Shares of AMD have jumped 67% so far this year, though they remain somewhat below mid-June levels, when the stock traded at over $125 per share.