In the September quarter, AMD reported adjusted earnings of 70 cents per share on sales totaling $5.8 billion. According to FactSet’s analyst poll, the anticipated AMD earnings were 68 cents per share on sales of $5.7 billion. On a year-over-year basis, both AMD’s sales and earnings witnessed a 4% increase.
Looking ahead to the fourth quarter, AMD anticipates sales of $6.1 billion, reflecting a 9% rise from the corresponding period last year. Nevertheless, analysts had projected higher Q4 sales at $6.39 billion.
Despite this, AMD projected sales for its new artificial intelligence chips in data centers to be higher than anticipated. This optimistic forecast led to a 9.7% surge in AMD stock during the subsequent trading session, as of today AMD shares have since risen 21% to a peak of $119.83 since the report.
The reason being is quite simple, AMD have made significant revenue and unit share gains in the server, laptop, and desktop PC markets during the last quarter and even year-over-year.
During the third quarter, AMD gained market share from Intel in both PC and crucially server CPUs, as reported by Mercury Research.
In desktop PC processor sales, AMD’s market share increased to 19.2%, up from 13.9% in the corresponding period of the previous year, but happens to be down compared to the previous quarter.
For notebook PC processor sales, AMD secured a 19.5% market share, compared to 15.7% in the same quarter last year and 16.5% the previous quarter.
In the most lucrative market, regarding enterprise server CPUs, AMD’s unit share experienced substantial growth, reaching 23.3% in the third quarter, a notable increase from 17.5% in the year-earlier period.
AMD are making grounds on the lucrative server sector mostly due to Intel’s complete and utter lack of competitive viability with Sapphire Rapids following its utter domination by AMD’s own EPYC processors which are much more competitive, featuring more cores with greater far greater efficiency for competitive prices so it comes as no surprises as to why AMD’s server market share would show the most substantial increase over the previous quarter with a 4.7% net gain.
Moving forward, AMD is scheduled the launch its MI300 accelerators at an event named “Advancing AI,” set to take place on December 6. While AMD has a cautious outlook for Q4, it countered with a bullish forecast for the sales of its MI300 AI accelerators which seemingly has no shortage of customers.
AMD is expecting to surpass $2 billion in sales for the new product by 2024 and foresees $400 million in sales in the fourth quarter as production increases.
