AMD beats earnings expectations with record revenue and strong outlook

AMD reported third-quarter revenue of 13.4 billion dollars, a 45% increase and a record high. Adjusted earnings per share were 2.09 dollars, exceeding the expected 1.95 dollars. The company's fourth-quarter outlook also surpassed initial estimates, causing the stock to rise significantly in after-hours trading. AMD's revenue from data center chips nearly doubled, exceeding expectations, while margins remained stable despite rising memory chip prices. The company expects significant growth next quarter.

In related market moves, shares of Supermicro and Arista also rose more than 5% after market close following positive quarterly earnings reports. Supermicro reported a gross margin of nearly 13%, better than anticipated, and revenue more than quadrupled. Arista achieved its strongest revenue growth since its 2014 IPO at 59%, maintaining solid margins. These results were viewed as positive news for the AI sector, contrasting with recent volatility in software stocks. In the same session, chip stocks generally recovered, with Broadcom rising over 3% and Nvidia and Micron gaining over 2% each, helping the Nasdaq 100 end its three-day losing streak with a 0.7% gain.