AMD reported quarterly earnings of $13.4 billion, driven by strong data center sales.

The chip designer called Q3 its "largest and most profitable quarter" in history and forecast another record quarter in Q4 at $17bn.

While total revenues were up 45 percent, data center-specific revenue grew some 97 percent to $8.5bn. Data centers made up 64 percent of company revenue, with CFO Jean Hu forecasting that it will jump to 80 percent in the new year.

“We delivered a record quarter with revenue exceeding the high end of our guidance as Data Center segment sales nearly doubled Year-over-Year,” said Dr. Lisa Su, AMD chair and CEO.

“Demand for our Instinct and Epyc products continued to strengthen, and we expect growth to accelerate further in the fourth quarter as we scale Helios and ‘Venice’ production. With our leadership product portfolio and deep customer and supply chain relationships, we are confident in our ability to sustain very strong revenue growth and expanding profitability over the coming years.”

Su said that she expects server revenue to double in 2027. “We have worked across our supply chain to secure the wafers, substrates, advanced packaging, memory, and other key components needed to support much higher growth next year,” she noted.

Last week, Intel reported weak earnings due to supply chain challenges that limited its ability to sell chips.

AMD shares jumped eight percent on the news, reversing several days of decline amid a broader market of uncertainty for AI and data center stocks.

Outside of its data center business, the client business revenue grew seven percent to $2.9bn, while gaming business revenue fell by some 40 percent to $773 million. Embedded segment revenue was up 29 percent to $1.1bn.