AMD sales forecast tops estimates on soaring AI chip demand

Fourth-quarter revenue will be US$17 billion (S$21.7 billion), plus or minus 3%, the chipmaker said in a statement on Nov 3.

CALIFORNIA – Advanced Micro Devices, a key challenger to Nvidia in artificial intelligence chips, gave a revenue forecast that exceeded analysts’ estimates, indicating that demand for data centre processors remains strong.

Fourth-quarter revenue will be US$17 billion (S$21.7 billion), plus or minus 3%, the chipmaker said in a statement on Nov 3.

The outlook provided fresh evidence that AI spending is sustainable, potentially helping soothe jittery investors.

Shares of chipmakers and other tech companies have been battered in recent weeks over concerns about a bubble in the AI infrastructure industry.

Under chief executive officer Lisa Su, AMD has become one of the most important suppliers of processors and computers that operate at the heart of AI facilities, underpinning a flood of new services.

“Our fourth-quarter outlook reflects accelerating revenue and earnings growth, driven by strong demand across our data centre portfolio,” chief financial officer Jean Hu said in the statement.

AMD shares gained about 6% in late trading after the report was released. Even with recent turbulence, the stock has more than doubled in 2026.

The company’s valuation reached US$1 trillion in September, putting it in an elite group.

The data centre growth has helped AMD offset a slump in the personal computer market, where rising memory-chip costs have slowed production and depressed user demand.

Intel, AMD’s top rival in that field, suffered its worst stock decline in decades after a downbeat earnings report last week.

One possible weak spot for AMD: Its gross margin will narrow to about 55% in the fourth quarter.