AMD Continues PC CPU Sales Rebound As Server Chip Sales Perk Up

‘We delivered strong revenue and earnings growth driven by demand for our Ryzen 7000 series PC processors and record server processor sales,’ AMD CEO Lisa Su says of the company’s third-quarter financial results.

AMD said PC CPU sales grew in the double digits in the third quarter, continuing a recovery from a slowdown that has dragged down the chip designer and other companies in the computer industry.

The rebound in client processor sales helped the Santa Clara, Calif.-based company grow third-quarter revenue 4 percent year-over-year and 8 percent sequentially to $5.8 billion, AMD said Tuesday.

[Related: Intel CEO Gelsinger: ‘We Are Hitting Or Beating All Our Product Roadmap Milestones’]

This allowed the chip designer to beat Wall Street’s expectations on revenue by $110 million, and its earnings per share of 70 cents also exceeded analyst estimates, by 2 cents.

AMD’s client segment revenue grew 42 percent year-over-year and 46 percent sequentially to $1.5 billion, mainly due to an increase in Ryzen 7000 CPU sales.

The company’s data center segment, on the other hand, was $1.6 billion, flat from the previous year but 21 percent higher than the previous quarter. This was due to higher sales of AMD’s fourth-generation EPYC CPUs, which were offset by a decline in adaptive system-on-chip products.

“We delivered strong revenue and earnings growth driven by demand for our Ryzen 7000 series PC processors and record server processor sales,” AMD CEO Lisa Su said in a statement.

Su reaffirmed that the company’s next-generation data center GPUs, the MI300A and MI300X, are on track for mass production in the fourth quarter to support “several leading” customers in high-performance computing, cloud computing and AI.

“Our data center business is on a significant growth trajectory based on the strength of our EPYC CPU portfolio and the ramp of Instinct MI300 accelerator shipments to support multiple deployments with hyperscale, enterprise and AI customers,” she said.

AMD expects to make roughly $6.1 billion, plus or minus $300 million, in the fourth quarter, which would represent about a 9 percent increase from the same period last year at the revenue’s mid-range point.

The company’s stock price was down more than 3.5 percent in after-hours trading.