AMD beats and says server revenue will double in 2027, then drops about 14% in Thursday's chip rout
CNBC's analyst roundup explains what Wall Street liked in AMD's quarter, which makes the stock's plunge two days later a story about the market rather than the company.
AMD reported third-quarter results on Tuesday, November 3, with adjusted earnings of $2.09 a share against $1.95 expected by analysts polled by LSEG, and revenue of $13.38 billion against $13.09 billion expected. CEO Lisa Su said server revenue is expected to double in 2027 and that data center AI growth should accelerate faster than AMD forecast three months earlier. Analysts said stronger AI revenue could offset softness in PCs, and the stock rose about 4% in premarket trading on Wednesday after falling roughly 24% over the prior month.
The bounce did not last. In Thursday's AI and chip selloff after the midterms, AMD fell about 14%, CNBC reports, as investors worried that Democratic wins could slow data center construction.