AMD stock falls nearly 4% despite strong Q3 results and guidance

Advanced Micro Devices stock price fell nearly 3.7 per cent to $250.05 at close and 3.72 per cent in extended trading hours to $240.76 on NASDAQ on November 4, despite the chipmaker reporting third-quarter results and guidance above Wall Street's forecast.

The semiconductor stock has given multibagger returns by surging over 148.58 per cent in six months and 107.29 per cent in terms of year-to-date (YTD).

Advanced Micro Devices Q3 results and guidance

The chipmaker posted record revenue of $9.25 billion, marking a 36 per cent year-over-year increase, with a non-GAAP EPS of $1.20.

CEO Lisa Su called it an “outstanding quarter,” driven by strong, broad-based demand for EPYC data center processors, Ryzen CPUs, and Instinct AI accelerators.

“We delivered an outstanding quarter, with record revenue and profitability reflecting broad based demand for our high-performance EPYC and Ryzen processors and Instinct AI accelerators. Our record third quarter performance and strong fourth quarter guidance marks a clear step up in our growth trajectory as our expanding compute franchise and rapidly scaling data center AI business drive significant revenue and earnings growth,” Su was quoted as saying in a conference call.

The data centre division led performance, generating $4.3 billion in revenue versus the expected $4.1 billion, up from $3.5 billion a year ago.

The client segment (desktop and laptop chips) brought in $2.9 billion, surpassing forecasts of $2.6 billion, while the gaming unit also outperformed, recording $1.3 billion in revenue against projections of $1.1 billion.

Advanced Micro Devices AI deals

AMD has recently entered into two major partnerships with OpenAI and Oracle, marking a potential turning point in its AI strategy.

As part of its agreement with OpenAI, AMD will provide up to 6 gigawatts of GPUs for OpenAI’s AI data centres, while OpenAI will purchase around 160 million AMD shares—equivalent to roughly 10 per cent ownership in the company.

In a separate deal, Oracle will deploy 50,000 AMD GPUs across its global data centres. Both collaborations will feature AMD’s next-generation MI450 GPUs and rack-scale systems, scheduled for release in the second half of 2026.

Together, these partnerships significantly enhance AMD’s presence in large-scale AI infrastructure—a domain currently led by Nvidia.

Advanced Micro Devices Q4 forecast

For the fourth quarter, AMD anticipates an adjusted gross margin of 54 per cent, slightly below the projected 54.5 per cent. In the previous quarter, the company reported an adjusted gross margin of 54%, marginally surpassing expectations.

Meanwhile, AMD is ramping up production of its newest chips to address rising demand and has expanded manufacturing to include complete AI systems—mirroring Nvidia’s strategy—which has led to a costly scale-up phase.

(With inputs from agencies)

Disclaimer: This story is for educational purposes only.