AMD shares rise 7% as data center revenue nearly doubles

AMD’s stock jumped 7% in after-hours trading after the chipmaker reported better-than-expected third-quarter results. Data center revenue nearly doubled year-over-year, driven almost entirely by demand for its MI300 series AI accelerators. The results show AMD converting its investment in AI chips into revenue as customers expand their computing infrastructure.

The MI300 series competes with Nvidia’s H100 and H200 GPUs. AMD’s MI300X accelerator appears to be gaining adoption among major cloud providers and enterprise customers seeking alternatives to Nvidia’s ecosystem. Nvidia’s reported supply constraints and premium pricing create an opportunity for AMD, while Intel continues to struggle to gain traction with its Gaudi accelerators.

Sustaining growth will depend on AMD’s ability to increase production, secure major customer deployments and improve its ROCm software platform. AMD relies on TSMC to manufacture its most advanced chips, making access to manufacturing capacity a strategic priority. Its PC processor, gaming chip and embedded systems businesses also provide diversification beyond AI infrastructure.