A financial report showing growth exceeding expectations coincided with a rebound in the stock prices of several AI hardware stocks in the U.S. market.

According to the financial report for the third quarter of 2026 released on November 3rd local time by AI Chip Company AMD ( AMD.O ), during that quarter AMD reported revenue of 13.4 billion US dollars, a year-on-year increase of 45% and a month-on-month increase of 16%, exceeding the previous forecast range of 12.7 to 13.3 billion US dollars; GAAP reported a net profit of 2.4 billion US dollars, a year-on-year increase of 95% and a month-on-month increase of 6%; GAAP had a gross margin of 54%, an increase of two percentage points year-on-year.

"We had a record-breaking quarter, with revenue exceeding the high end of our guidance range, and sales from our data center business nearly doubled year-over-year," said AMD CEO Su Zifeng. He expects growth to accelerate further in the fourth quarter and is confident that we will maintain strong revenue growth and improved profitability in the coming years.

In the specific business operations, in the third quarter, the revenue of the AMD data center department reached 8.5 billion US dollars, a year-on-year increase of 97%, driven by the demand for EPYC servers CPU and Instinct MI450 GPU; the revenue of the client and gaming department was 3.7 billion US dollars, a year-on-year decrease of 8%. Among them, the revenue from client services increased by 7% to 2.9 billion US dollars, while the revenue from gaming services decreased by 40% to 773 million US dollars; the revenue of the embedded systems department was 1.1 billion US dollars, a year-on-year increase of 29%.

AMD Outlook: Revenue for the fourth quarter is expected to be $17 billion, with a fluctuation of 3%. The midpoint of the revenue guidance represents a year-over-year increase of 66% and a quarter-over-quarter increase of 27%. The revenue guidance exceeds market expectations.

On November 3rd, AMD rose by 3.65%, and at one point after the market closed it even rose by over 9%, before the increase narrowed to 6.82% later on. Among other U.S. stocks in the AI infrastructure sector, NVIDIA (NVDA.O) rose by 2.29%, with a market value of $4.98 trillion, surpassing Apple (AAPL.O) to reclaim the first place in global total market value, and continued to rise by 0.72% after the market closed. In addition, Oracle (ORCL.N) rose by 5.86%, and CoreWeave, a cloud computing company (CRWV.O), rose by 7.16%. Storage stocks such as Micron Technology (MU.O), SanDisk (SNDK.O), and Western Digital (WDC.O) rose by 2.58%, 4.78%, and 2.59% respectively.

During the teleconference following the release of the financial report, Su Zifeng discussed more about business progress and prospects. Su Zifeng stated that AMD began mass delivery of MI455X GPU from this quarter onwards. Anthropic, Meta, Microsoft, OpenAI, and Oracle are running models and workloads on the first batch of Helios rack-level solutions. It is expected that deployments of Helios will increase significantly in the fourth quarter. Compared to competitors, Helios has a leading advantage in terms of memory bandwidth, among other aspects. In addition, AMD began shipments of EPYC Venice CPU in the third quarter, and cloud vendors will carry out deployments during this quarter.

AMD previously announced that it would acquire World Labs, a space intelligence company founded by scientist Fei-Fei Li of AI, for $8.2 billion. Su Zifeng stated that the acquisition will be completed by the end of this year.

Looking ahead, Su Zifeng stated that he expects stronger performance in the fourth quarter. In 2026, the data center business is expected to more than double in size, and the growth in the data center and embedded markets will be sufficient to offset the decline in CPU sales at the client side. At the same time, revenue is expected to grow by over 80% in 2027, which is more than twice the forecast at the end of last year. The data center business will account for over 80% of total revenue in 2027, and server business revenue is expected to double year-on-year. Within the data center business, CPU business revenue is expected to approximately double in 2027, while AI business revenue is expected to grow by more than half.

However, Su Zifeng expects that the market shipments of PC will see a double-digit percentage decline in 2027. 'When component prices rise, it affects the pricing of the entire system, and consumers become more sensitive to these changes, which we have seen reflected in a decline in sales. In the current environment, we are planning to get through this sluggish year of 2027.'

In terms of the supply chain, Su Zifeng stated that efforts are being made to ensure the supply of wafers, substrates, packaging, memory, and other key components in order to support faster growth next year. In addition to memory, there is also pressure for price increases for other components. She also acknowledged that demand still exceeds supply.