AMD reported earnings!
update: AMD reported, so here's how it went:
- revenue $13.4B vs $13.1B expected, up 45% from a year ago
- EPS $2.09 vs $1.94 expected
- data center $8.5B, up 97%, with the new MI450 GPUs starting to ship
- Q4 guide around $17B vs $16.2B expected
- management now expects 2027 revenue to grow more than 80%
and this time the stock went up, around 8% after hours
historically, AMD's shares have fallen even with earnings beat. so what changed this time?
the big one: data center $8.5B, nearly double last year.
that's the new MI450 GPUs starting to ship. Anthropic, Meta, Microsoft, OpenAI and Oracle are already running on Helios, AMD's first full-rack system (the thing i said mattered more than any faster chip)
management also expects 2027 revenue to grow 80%+. analysts were at ~60%.
and they said GPU shipments step up a lot from Q3 to Q4, enough that AI GPUs overtake server CPUs as their bigger data center business
so that's 5 beats in the last 6 prints, and the stock went up after 3 of them. the difference this time was the guide: last quarter they beat but margins disappointed, this quarter the outlook was way above what anyone expected. still the same lesson though - you don't know which one you're getting until after the print.
and yes, i know AMD fell after that. but that's due to the midterms election results, which I will post another piece about. stay tuned!
disclosure: i hold AMD. not financial advice.
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