According to Thurrott.com, AMD just announced it earned $1.2 billion in net income on revenues of $9.2 billion for the quarter ending September 27. That represents a huge 61% jump in profits and 36% revenue growth compared to the same period last year. CEO Dr. Lisa Su credited “broad based demand for our high-performance EPYC and Ryzen processors and Instinct AI accelerators” for the record results. The Data Center segment alone brought in $4 billion, up 22% year-over-year, while Client and Gaming combined for another $4 billion with 73% growth. Despite these impressive numbers, AMD’s stock still fell 3% in extended trading because investors were apparently expecting even more from the data center business.
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AMD vs Nvidia Battle Heats Up
Here’s the thing: AMD is making serious moves against Nvidia in the AI accelerator space, and it’s starting to show in the numbers. Dr. Su signaled this strategic shift back in late 2024, and now the Data Center business has been AMD’s largest segment for three of the last four quarters. They’re specifically calling out strong demand for their 5th Gen EPYC processors and MI350 Series GPUs. But even with $4 billion in data center revenue, the market reaction tells you everything – when you’re competing with Nvidia, “good” isn’t always good enough for Wall Street.
Where The Real Growth Happened
While everyone’s focused on AI, AMD’s traditional businesses are absolutely crushing it. Client revenue hit $2.8 billion with 46% growth thanks to record Ryzen processor sales. And get this – Gaming revenue exploded by 181% to $1.3 billion. That’s the kind of growth that makes you do a double-take. The only soft spot was Embedded, which dipped 8% to $857 million. Basically, AMD is firing on almost all cylinders right now, which makes that stock drop seem pretty harsh.
What’s Next For AMD
So where does AMD go from here? Dr. Su says this quarter “marks a clear step up in our growth trajectory,” and she’s probably right. The company is executing well across multiple markets while simultaneously building its AI credibility. The big question is whether they can close the gap with Nvidia fast enough to keep investors happy. Because let’s be real – in today’s market, if you’re in AI and not growing at hyperspeed, you’re basically standing still. Still, with strong fourth quarter guidance and multiple growth engines, AMD seems positioned to keep this momentum going.
