“We delivered strong third quarter financial results with record revenue led by higher sales of EPYC and Instinct data center products and robust demand for our Ryzen PC processors,” said AMD Chair and CEO Dr. Lisa Su. “Looking forward, we see significant growth opportunities across our data center, client and embedded businesses driven by the insatiable demand for more compute.”

“We are pleased with our execution in the third quarter, delivering strong year-over-year expansion in gross margin and earnings per share,” said AMD EVP, CFO and Treasurer Jean Hu. "We are on-track to deliver record annual revenue for 2024 based on significant growth in our Data Center and Client segments.”

In numbers, AMD reported revenue of $6.8 billion, an 18 percent increase YoY, with gross margin of 50 percent, up by 3 points, operating income of $724 million, up by 223 percent, net income of $771 million, up by 158 percent, and earnings per share of $0.47, which is an increase of 161 percent compared to the same quarter last year.

AMD has to thank its strong Data Center and Client segments for such steady results, as its Gaming and Embedded segments did not do that well. The Data Center segment reported a revenue of $3.5 billion, up by 122 percent YoY and 25 percent compared to the previous quarter. AMD is citing strong Instinct GPU and EPYC CPU sales. The Client segment also did well, with $1.9 billion, up by 29 percent YoY and 26 percent sequentially, mostly thanks to strong Zen 5 Ryzen CPU sales.

Gaming and Embedded segments were down by 69 and 25 percent, respectively, and AMD is blaming a decrease in semi-custom sales and normalization of inventory levels for the embedded segment.

AMD also posted a realistic Q4 2024 outlook, with $7.5 billion in revenue (+/- $300 million), which is still a growth of $22 percent YoY and 10 percent sequentially. Unfortunately, such a realistic forecast did not sit well with investors, as it sent the stock down by 6.5 percent in after-hours trading.