AMD's data center business is beginning to show truly remarkable growth.
The latest earnings report shows that third-quarter revenue reached $13.4 billion, up 45% year over year. Data center revenue was $8.55 billion, up 97% year over year.
More notably, AMD expects fourth-quarter revenue to reach $17 billion, an increase of about 27% quarter over quarter.
In the past, attention in the AI chip market has focused almost entirely on Nvidia, but AMD is working to gain more market share with its Instinct GPUs and EPYC server processors.
Based on the latest figures, the data center business now accounts for about 64% of AMD's quarterly revenue.
However, AMD's current forward P/E is about 31x, compared with about 14x for Nvidia. Even though AMD's growth is exceptionally strong, investors are already paying a significant price for future growth.
If revenue growth in 2027 materializes, AMD could become a company in the AI supply chain worth continuing to watch.
$AMDB $SPCXB $BTC
The latest earnings report shows that third-quarter revenue reached $13.4 billion, up 45% year over year. Data center revenue was $8.55 billion, up 97% year over year.
More notably, AMD expects fourth-quarter revenue to reach $17 billion, an increase of about 27% quarter over quarter.
In the past, attention in the AI chip market has focused almost entirely on Nvidia, but AMD is working to gain more market share with its Instinct GPUs and EPYC server processors.
Based on the latest figures, the data center business now accounts for about 64% of AMD's quarterly revenue.
However, AMD's current forward P/E is about 31x, compared with about 14x for Nvidia. Even though AMD's growth is exceptionally strong, investors are already paying a significant price for future growth.
If revenue growth in 2027 materializes, AMD could become a company in the AI supply chain worth continuing to watch.
$AMDB $SPCXB $BTC