AMD Reports Record Q3 Revenue Despite Stock Decline Amid AI Business Expansion

AMD's revenue and profit jumps again, but stock falls as margins disappoint - SiliconANGLE

AMD's revenue and profit jumps again, but stock falls as margins disappoint Advanced Micro Devices Inc. delivered sharp increases in both profit and revenue today as it pushed deeper into the artificial intelligence data center market. However, its stock was headed lower in late-trading after disappointing investors with its margin guidance. The chipmaker reported third-quarter earnings before certain costs such as stock compensation of $1.20 per share, edging past the $1.16 analyst target. Revenue for the period jumped 36% to $9.25 billion, surging past the Street's consensus estimate of $8.74 billion. All told, the company posted a net profit of $1.24 billion in the quarter, up from a profit of just $771 million one year ago. In terms of guidance, AMD said it's looking for fourth quarter revenue of around $9.6 billion at the midpoint of its forecast range, implying growth of approximately 25%. That's quite a bit higher than the Street's target of $9.15 billion. However, investors were disappointed to see AMD's forecast for adjusted gross margin, which came to just 54.5%, in-line with Wall Street's consensus. AMD Chair and Chief Executive Lisa Su (pictured) hailed the company's latest results as "outstanding", noting it delivered record-breaking revenue and profitability. She said the numbers reflect broad-based demand for the company's high-performance EPYC and Ryzen processors and growing interest in its Instinct AI accelerators. She added that the results mark "a clear step in our growth trajectory as our expanding compute franchise and rapidly scaling data center AI business drive significant revenue and earnings growth." Notably, AMD said its guidance for the current quarter does not include anticipated revenue from shipments of its Instinct MI308 processors to China, similar to the previous quarter when they were also excluded. The reason is that, although the U.S. government has approved waivers that allow it to ship MI308 to Chinese customers, it's currently waiting on the Department of Commerce to review its license applications, and can't be sure when they'll be accepted. If AMD is able to clear its shipments to China, that could boost its revenue substantially and perhaps also move the needle on its margins, but it seems investors don't like uncertainty, and so the company's stock fell 3% in extended trading today. That followed a decline of nearly 4% in the regular trading session. Despite this, the company's stock is still up 107% in the year to date, compared to a gain of just 21% for the broader Nasdaq index. AMD's stock has surged this year because the company is striving to keep pace with Nvidia Corp. in the market for graphics processing units that power AI workloads. For years, the biggest players in AI, such as OpenAI Group PBC, were almost exclusively reliant on Nvidia's GPUs, but that has changed with the arrival of AMD's Instinct processors. The company has made some significant announcements regarding the growing adoption of its chips. Last month, Oracle Corp. announced plans to deploy 50,000 new AMD Instinct MI450 AI processors in its cloud, starting next year. The MI450 is AMD's most advanced GPU, set to launch early next year. Also last month, AMD said OpenAI is planning to deploy six gigawatts of its Instinct processors over multiple years, and across multiple generations of hardware, starting with an initial deployment of around one gigawatt. As part of that deal, OpenAI is also considering taking a 10% stake in the chipmaker, having been given the option to purchase 160 million shares. AMD's growing traction was noted by D.A. Davidson analyst Gil Luria, who told the Wall Street Journal that he sees a potential inflection point for the chipmaker. "It depends on them executing on the operations side going forward and releasing a chip that performs at scale with high yields and high performance," he said. "If it does that, the sales are there waiting. There's significant demand out there for an Nvidia alternative." AMD's data center unit, which includes its AI accelerators and also standard EPYC central processing units, delivered $4.34 billion in revenue during the quarter, up 22% from a year earlier and above the Street's $4.13 billion forecast. Still, investors had been looking for greater profitability, and although the unit delivered record revenue, its operating income of $1.07 billion trailed the Street's forecast by approximately 14%. That's because data center margins dropped to 25%, from 29% one year ago. The client computing business, which accounts for chips used in personal computers, came to $2.75 billion, up 46% and well ahead of the Street's forecast of $2.61 billion. Gaming revenue totaled $1.3 billion, up 181% from a year earlier and above the consensus estimate of $1.05 billion.

AMD's Earnings Blow Past Estimates on Strong Demand for Data Center Chips

The chipmaker's fourth-quarter outlook was also well above the analyst consensus. Advanced Micro Devices (AMD) on Tuesday reported record quarterly results above analysts' projections as booming demand for AI helped boost sales of its data center chips. AMD posted adjusted earnings per share of $1.20 on revenue that jumped 36% year-over-year to a record $9.25 billion in the third quarter, well above analysts' estimates compiled by Visible Alpha. Sales in AMD's data center segment -- by far its largest -- rose 22% year-over-year to $4.3 billion, slightly above expectations. The results did not include any revenue from shipments of AMD's MI308 AI chip line to China, which AMD has said it would resume after ironing out a revenue-sharing agreement with the Trump administration. CEO Lisa Su said the strong results mark "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." For the current quarter, AMD said it sees revenue between $9.3 billion and $9.9 billion, above the analyst consensus of $9.17 billion. That range doesn't include any revenue from AMD MI308 shipments to China either, AMD said. Shares of AMD slipped about 1% in extended trading following the release, after dropping close to 4% in Tuesday's session amid broader declines as worries about an AI bubble weighed on tech stocks. The chipmaker's stock has more than doubled in value this year.

AMD stock crashes despite strong Q3 results: why is AMD stock down today, and could AMD's rack-scale AI breakthrough spark a massive 2026 comeback?

AMD stock crashed 3.7% to $250.05 despite posting record Q3 2025 earnings. The chipmaker reported $9.25 billion in revenue, up 36% year-over-year, and $1.20 EPS, beating forecasts. Strong AI chip demand and new deals with OpenAI and Oracle pushed data center revenue to $4.3 billion. Yet, investors booked profits after massive gains this year. AMD's $406 billion market cap and high 150.63 P/E ratio reflect steep valuation worries. Analysts still see rack-scale AI systems as AMD's 2026 growth catalyst. AMD Q3 2025 earnings results just shattered Wall Street forecasts. The chipmaker reported record revenue of $9.25 billion, up 36% year-over-year, and non-GAAP EPS of $1.20, beating analyst expectations of $1.17. Analysts had projected $8.74 billion in sales, but AMD surged past that with strong performance in data centers, gaming, and AI chips. CEO Lisa Su said it was an "outstanding quarter," fueled by "broad-based demand" for its EPYC processors, Ryzen CPUs, and Instinct AI accelerators. The company guided for Q4 2025 revenue between $9.3 billion and $9.9 billion, above Wall Street's $9.21 billion forecast, signaling continued growth momentum. Data center revenue jumped to $4.3 billion from $3.5 billion a year ago. Client segment sales climbed to $2.9 billion, ahead of expectations at $2.6 billion. Gaming revenue rose to $1.3 billion, surpassing estimates of $1.1 billion. AMD's AI segment remains its biggest growth driver, supported by fresh deals with OpenAI and Oracle. Under the OpenAI deal, AMD will supply up to 6 gigawatts of GPUs to power AI data centers, while OpenAI will purchase roughly 160 million AMD shares, equal to about 10% ownership. Oracle will deploy 50,000 AMD GPUs across global cloud data centers. Both partners will use AMD's next-generation MI450 AI chips and rack-scale platforms launching in 2026. AMD is also providing chips for two Department of Energy supercomputers, representing a $1 billion investment. Despite the strong earnings, AMD stock (NASDAQ: AMD) slipped 3.7% to $250.05 at close, and 3.72% after hours to $240.76. The stock's 52-week range is $76.48 to $267.08, with a market cap of $406 billion and a high P/E ratio of 150.63. Still, shares have jumped 108% year to date and 79% in the last 12 months, reflecting strong investor confidence in its AI expansion. Analysts, including Morgan Stanley's Joseph Moore, said AMD's rack-scale systems will be key for future growth, though execution risks remain compared to Nvidia, whose market cap now exceeds $5 trillion. AMD's partnerships and Q4 guidance mark a major inflection point in its AI trajectory. Lisa Su said the company's "record quarter and strong outlook show the next phase of AMD's compute and AI growth is accelerating." Advanced Micro Devices (NASDAQ: AMD) crushed Wall Street expectations in its third quarter of 2025, reporting record revenue of $9.25 billion, a 36% year-over-year increase. The company posted non-GAAP earnings per share (EPS) of $1.20, above analyst forecasts of $1.17, according to Bloomberg consensus. CEO Lisa Su called it an "outstanding quarter," highlighting broad-based demand across EPYC data center processors, Ryzen CPUs, and Instinct AI accelerators. AMD expects its Q4 2025 revenue to reach between $9.3 billion and $9.9 billion, topping Wall Street's $9.21 billion estimate. The data center segment led AMD's results, bringing in $4.3 billion in revenue versus analyst expectations of $4.1 billion. That's up sharply from $3.5 billion a year earlier. AMD's client division, which includes desktop and laptop chips, delivered $2.9 billion, beating forecasts of $2.6 billion. The gaming unit also performed well, hitting $1.3 billion in revenue compared with projections of $1.1 billion. The results underscore AMD's momentum in the AI and high-performance computing market, where it's rapidly expanding against Nvidia (NASDAQ: NVDA) and Broadcom (NASDAQ: AVGO). AMD recently signed two landmark deals with OpenAI and Oracle that could redefine its AI strategy. Under the OpenAI agreement, AMD will supply up to 6 gigawatts of GPUs for OpenAI's AI data centers, while OpenAI will acquire about 160 million AMD shares, roughly 10% of the company. A separate deal with Oracle includes deploying 50,000 AMD GPUs across Oracle's global data centers. Both partnerships will integrate AMD's next-generation MI450 GPUs and rack-scale systems, expected to ship in the second half of 2026. These deals strengthen AMD's role in powering large-scale AI infrastructure, a space currently dominated by Nvidia. Despite stellar results, AMD stock (NASDAQ: AMD) closed down 3.7% at $250.05, slipping $9.60 in the last session. After-hours trading showed a further 3.7% dip to $240.76. The stock's 52-week range spans from $76.48 to $267.08, and its market capitalization stands at roughly $406 billion. AMD trades at a P/E ratio of 150.63, signaling high growth expectations from investors. Even with the pullback, shares are up 108% year to date and 79% over the past 12 months. The stock has gained 53% in the last month following its AI announcements. Morgan Stanley analyst Joseph Moore praised AMD's rack-scale AI architecture as "key to the company's next growth phase." He noted the OpenAI deal as a "clear accelerant" but cautioned that execution and return-on-investment (ROI) versus Nvidia remain important watchpoints. "AMD's rack-scale solution shipping next year is the key, and we are excited to see what the company can do," Moore said. However, he added that "cloud ramp-up and ecosystem readiness" will be vital to maintaining momentum. AMD projects its Q4 2025 revenue at up to $9.9 billion, driven by strong AI demand, robust data center growth, and expanding enterprise adoption. With partnerships spanning OpenAI, Oracle, and U.S. government supercomputing initiatives, AMD is positioning itself as the most credible challenger to Nvidia's dominance in AI chips. As Lisa Su put it: "Our record third-quarter performance and strong fourth-quarter guidance mark a clear step up in our growth trajectory as our compute franchise and AI business continue to scale." (You can now subscribe to our Economic Times WhatsApp channel)

AMD CEO Lisa Su Expects OpenAI Partnership To Generate Over $100 Billion In Revenue And 'Significantly Accelerate' AI Business - Advanced Micro Devices (NASDAQ:AMD)

Chipmaker Advanced Micro Devices Inc.'s (NASDAQ:AMD) CEO, Lisa Su, highlighted the significance of the company's multi-billion-dollar, multi-year partnership with OpenAI, saying that it could help the company's AI business gain traction. AMD is among today's weakest performers. View the charts here. $100 Billion In Revenue From OpenAI Deal During the company's third-quarter earnings call on Tuesday, Su said that the deal with "significantly accelerate" AMD's data center AI business, while potentially generating "over $100 billion in revenue over the next few years." The partnership includes a massive deployment of AMD's Instinct GPUs, totaling 6 gigawatts of compute power. According to Su, "The first gigawatt of MI450 series accelerators [is] scheduled to start coming online in the second half of 2026," helping position it as a key player in the AI compute arms race. See Also: Market Wants More AMD Datacenter Growth Despite OpenAI Win, Must Answer Nvidia's $500 Trillion Orders, Says Daniel Newman "The partnership establishes AMD as a core compute provider for OpenAI and underscores the strength of our hardware, software, and full-stack solutions strategy," she said. AMD and OpenAI are set to collaborate across multiple fronts, including future hardware, software, and system-level roadmaps, as this partnership moves forward. Stock Dips Despite Beat-And-Raise Quarter AMD released its third-quarter results on Tuesday, reporting $9.25 billion in revenue, up 36% year-over-year, and ahead of consensus estimates at $8.74 billion. The company reported a profit of $1.20 per share, which was again ahead of analyst consensus at $1.16, according to Benzinga Pro. The chipmaker also raised its fourth-quarter guidance, now expecting $9.6 billion in revenue, compared with analyst estimates of $9.16 billion. Despite posting a beat-and-raise quarter, AMD's shares were down 3.7% on Tuesday, closing at $250.05, and are down another 3.19% overnight. The stock scores high on Momentum, Growth and Quality in Benzinga's Edge Stock Rankings, with a favorable price trend in the short, medium and long-term. Click here for deeper insights. Read More: AMD Hit With Two Lawsuits From Adeia Alleging Massive Patent Violations Ahead Of Q3 Earnings Photo Courtesy: jamesonwu1972 On Shutterstock.com AMDAdvanced Micro Devices Inc$238.20-8.26%OverviewMarket News and Data brought to you by Benzinga APIs

AMD Notes 'Sharp' Sales Jump For CPUs And Instinct GPUs As OpenAI Ties Deepen

'Our data center AI, server, and PC businesses are each entering periods of strong growth, led by an expanding [total addressable market], accelerating adoption of our Instinct platforms and EPYC and Ryzen CPU share gains,' AMD CEO Lisa Su says. AMD said Tuesday that a "sharp" jump in sales for the company's CPUs across the PC and server segments as well as its Instinct data center GPUs allowed it to deliver record revenue of $9.2 billion for the third quarter as it teased deeper ties with OpenAI. With quarterly revenue representing a 36 percent increase year over year and a 20 percent sequential increase, AMD CEO Lisa Su called the "record" third-quarter results and "strong" fourth-quarter outlook a reflection of the chip designer's "significant momentum building across our business" in its earnings call. [Related: Analysis: AMD Puts Channel Pressure On Intel As Both Firms Revamp Partner Programs] "Our data center AI, server, and PC businesses are each entering periods of strong growth, led by an expanding [total addressable market], accelerating adoption of our Instinct platforms and EPYC and Ryzen CPU share gains," she said. For the three-month period, which ended in late September, AMD reported a GAAP gross profit of $4.8 billion, up 40 percent year over year and up 56 percent sequentially, as well as a GAAP gross margin of 52 percent, up 2 points year over year and up 12 points year over year. The company's GAAP net income for the quarter was $1.2 billion, up 61 percent year over year and up 43 percent sequentially. Its GAAP earnings per share was 75 cents. AMD beat Wall Street's expectations on revenue by $500 million and on non-GAAP earnings per share by 3 cents with a reported $1.20 earnings per share. The chip designer expects fourth-quarter revenue to reach roughly $9.6 billion, plus or minus $300 million. This would represent a 25 percent year-over-year increase and 4 percent growth sequentially at the midpoint of its guidance. The quarterly revenue forecast came within the average estimate by Wall Street analysts but was below the high-end estimate of $9.8 billion, according to Yahoo Finance. AMD's stock price was down more than 3.5 percent in after-hours trading. The company's data center business grew 22 percent year over year to a record $4.3 billion, driven by "strong demand" for its fifth-generation EPYC processors as well as a "sharp" sales ramp of its Instinct MI350 GPUs and "broader" MI300 GPU deployments. On the Instinct side, Su said the company has "multiple" MI350 series deployments "underway with large cloud and AI providers, with additional large-scale rollouts on track to ramp over the coming quarters." The cloud companies buying MI350 GPUs include Oracle as well as several smaller providers such as Crusoe, Digital Ocean, Tensorwave and Vultr. Su also cited IBM, Zyphra, Cohere, Character AI and Luma AI as companies that are using the MI300 series for training or inference workloads. As for AMD's next-generation MI400 series, Su said development of the GPUs as well as the Helios rack-scale platform they will power "is progressing rapidly." She added that the products are supported by "deep technical engagements across a growing set of hyperscalers, AI companies and OEM and ODM partners to enable large-scale deployments next year." Among those companies is OpenAI, which announced last month a multi-year agreement with AMD to deploy six gigawatts of Instinct GPUs starting in the second half of next year. Echoing comments Su made when the deal was disclosed, she said the partnership will "significantly accelerate" AMD's data center AI business, adding that it could allow the company to bring in "over $100 billion in revenue over the next few years." "Moving forward, AMD and OpenAI will work even more closely on future hardware, software, networking and system-level roadmaps and technologies," Su said. She also reaffirmed her recent outlook that the company is "on a clear trajectory" to make tens of billions in annual revenue in 2027 from rack-scale solutions like Helios. As for the other major driver of AMD's data center business, Su said server CPU revenue "reached an all-time high" thanks to rapid adoption of its fifth-gen EPYC processors, which made up nearly half of all EPYC revenue for the quarter. "Sales of our prior generation EPYC processors were also very robust in the quarter, reflecting their strong competitive positioning across a wide range of workloads," she said. The company saw "record sales" in the cloud infrastructure market from hyperscalers deploying EPYC for both first-party services and public cloud offerings, with more than 160 EPYC-powered instances launched in the quarter, according to Su. This brought the total number of public EPYC cloud instances to more than 1,350, nearly 50 percent higher than it was a year ago, she added. Further reinforcing AMD's strength in the cloud, Su said large businesses increased their adoption of EPYC cloud instances by more than three-fold year over year, with on-premises usages "driving increased demand from enterprise customers." AMD expects server CPU demand to "remain very strong as hyperscalers are significantly increasing their general-purpose compute capacity as they scale their AI workloads," Su said. "Many customers are now planning substantially larger CPU buildouts over the coming quarters to support increased demands from AI, serving as a powerful new catalyst for our server business," she added. As for on-premises customers, the company has seen a sharp increase in EPYC server sell-through compared to a year ago thanks to "accelerating enterprise adoption," supported by more than 150 fifth-gen EPYC platforms on the market from a variety of OEMs, Su said. AMD notched "large" new EPYC customer deals with "leading" Fortune 500 companies across several verticals, including telecom, financial services, retail and automotive, she added. Su said the company's next-generation, 2-nanometer EPYC "Venice" processors remain on track to launch next year, calling customer pull and engagement for the product line "the strongest we have seen." This, according to her, reflects AMD's "competitive positioning and the growing demand for more data center compute." "Multiple cloud and OEM partners have already brought their first Venice platforms online, setting the stage for broad solution availability and cloud deployments at launch," she said. AMD's client PC and gaming segment grew 73 percent year over year to $4 billion, with client revenue alone generating a record $2.8 billion, up 46 percent from the same period last year thanks to "record sales of Ryzen processors and a richer product mix." Gaming revenue, on the other hand, grew 181 percent year over year to $1.3 billion, thanks to "higher semi-custom revenue" driven by Microsoft's and Sony's video game consoles as well as "strong demand" for the company's Radeon gaming GPUs. Desktop CPU sales alone "reached an all-time high, with record channel sell-in and sell-out led by robust demand" for the company's Ryzen 9000 processors," Su said. The CEO also cited a sharp increase in OEM sell-through of Ryzen-powered laptops, saying that it reflected "sustained end customer pull for premium gaming and commercial AMD PCs." In the commercial segment alone, AMD saw Ryzen PC sell-through grow more than 30 percent year over year, with enterprise adoption growing "sharply" thanks to "large wins with Fortune 500 companies across healthcare, financial services, manufacturing, automotive, and pharmaceuticals," according to Su. "Looking ahead, we see significant opportunity to continue growing our client business faster than the overall PC market based on the strength of our Ryzen portfolio, broader platform coverage, and expanded go-to-market investments," she said. The comment about expanded go-to-market investments was a reference to the more than 40 percent boost the company made to partner funding this year as part of its restructured commercial partner program, AMD Partner Network, which launched last month. AMD's only weak spot was the embedded segment, which declined 8 percent year over year to $857 million. However, Su indicated that the market is improving. "Design momentum remains very strong across our embedded portfolio," she said. "We are on track for a second straight year of record design wins, already totaling more than $14 billion year-to-date, reflecting the growing adoption of our leadership products across a broad range of markets and expanding set of applications."

How AMD Stock Surged 58% Last Month | The Motley Fool

Shares of Advanced Micro Devices (AMD 3.53%) rose 58.3% in October 2025, according to data from S&P Global Market Intelligence. The semiconductor designer had a lot going on last month, divesting a hardware manufacturing operation and winning a big supercomputing contract at Oak Ridge National Laboratory. But most of the news only inspired small blips on AMD's stock chart. The real rocket fuel came from an unexpected OpenAI deal. On Oct. 6, ChatGPT maker OpenAI and AMD announced a multiyear processor supply deal, sending a total of 6 gigawatts of AMD processors to OpenAI's data centers. Revenue-generating shipments for the first gigawatt of AMD Instinct MI450 chips will start in the second half of 2026. AMD will also supply other parts of the artificial intelligence (AI) infrastructure, from rack platforms and cooling to central controllers with the EPYC server-class processors. The announcement also clarified AMD's place in OpenAI's existing setup. According to press materials, OpenAI is already working with AMD's older Instinct MI300X and MI350X AI accelerators. That simple fact may have been an eye-opener for some investors, who expected to find nothing but Nvidia (NVDA 3.85%) accelerators in OpenAI's number-crunching systems. The OpenAI deal is a sophisticated one, giving OpenAI the right to purchase up to 10% of AMD's stock as the AI system installations continue. At the same time, OpenAI didn't commit to a pure AMD partnership. In September, Nvidia signed an even larger AI accelerator deal with OpenAI, adding up to 10 gigawatts of annual power consumption over several years. And this week, OpenAI inked a $38 billion deal with Amazon (AMZN 1.91%) that puts even more Nvidia chips to work for the ChatGPT developer. So AMD didn't win the AI accelerator wars last month, but it did score a few much-needed points with investors and other AI software giants. If OpenAI is using a lot of AMD chips, that business relationship should open the door for other tech giants to try the Instinct hardware. Nvidia's latest and greatest accelerators typically win pure performance comparisons, but AMD may offer lower power draws, more affordable up-front costs, and other advantages. In other words, the AI hardware market is still in its early innings, and Nvidia doesn't own the whole thing. Investors are catching on to this dynamic situation, and AMD's stock has outperformed Nvidia's in 2025.

AMD reports upbeat guidance as Q3 results beat on AI-fueled data center boom By Investing.com

Investing.com-- AMD reported Tuesday upbeat guidance and better-than-expected Q3 results, as its "rapidly scaling" data center business continued to ride the artificial intelligence wave despite regulatory headwinds on chip sales to China. Advanced Micro Devices Inc (NASDAQ:AMD) (AMD) shares fell more than 2% in afterhours trade following the report. AMD reported adjusted EPS $1.2 on revenue of $9.25 billion. Analysts polled by Investing.com anticipated EPS of $1.17 on revenue of $8.74B. Data center revenue jumped 22% to $4.3B year-over-year, primarily driven by "strong demand for 5th Gen AMD EPYC processors and AMD Instinct MI350 Series GPUs," the company said. The jump revenue didn't include any revenue from shipments of AMD Instinct MI308 GPU products to China following the U.S. ban on chipmaking equipment to China. Client and gaming business revenue jumped 73% in Q3 to $4B year-over-year. Looking ahead, the company guided fiscal fourth-quarter revenue of $9.6B, give or take $300 million, an increase of about 25% year-on-year. That beat estimates for $8.75B. Q4 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," the company said.

AMD forecasts fourth-quarter revenue above estimates

(Reuters) -Advanced Micro Devices forecast fourth-quarter revenue above market estimates on Tuesday, betting on the multibillion-dollar expansions of data center infrastructure to boost demand for its artificial intelligence chips. The company expects revenue of about $9.6 billion for the quarter, plus or minus $300 million, compared with analysts' average estimate of $9.15 billion, according to data compiled by LSEG. AMD has been the recipient of many significant investments in AI hardware alongside partners ranging from ChatGPT parent OpenAI to the U.S. Department of Energy, with Wall Street betting heavily on the potential of relentless spending on advanced processors. The company's shares rose 1.5% in choppy extended trading. AMD reported third-quarter sales of $9.25 billion, compared with analysts' average estimate of $8.74 billion. Its shares have more than doubled in value in this year, with AMD's stock gains outpacing those of market leader Nvidia, even as the larger rival's market valuation scaled the $5 trillion mark. Fears of an AI bubble have lately rippled through Wall Street and AMD's results are being closely watched. AMD last month said it would supply AI chips to OpenAI in a multi-year deal that would bring in tens of billions of dollars in annual revenue and give the startup the option to buy up to roughly 10% of the chipmaker. The deal covers the deployment of hundreds of thousands of AMD's graphics processing units (GPUs), roughly equivalent to the energy needs of 5 million U.S. households, or about thrice the amount of power produced by the Hoover Dam. This has raised optimism around AMD's position in the unrelenting race to build the fastest, most widely adopted AI chips. However, Nvidia's dominance of the lucrative GPU industry and its dominant share of this market are still largely secure, analysts say, even as AMD competes for a bigger piece of the AI chip pie. (Reporting by Max A. Cherney in San Francisco and Arsheeya Bajwa in New Delhi; Editing by Sriraj Kalluvila and Matthew Lewis)