On November 4, AMD released its financial results for the third quarter of fiscal year 2025, reporting revenue and profits that exceeded market expectations while showing strong progress in the AI chip market.

According to the report, AMD's total revenue reached $9.25 billion, up 36% year-over-year, surpassing the $8.74 billion estimate by LSEG analysts. Adjusted earnings per share came in at $1.20, slightly higher than the forecast of $1.16. Net income climbed 61% to $1.24 billion, compared to $771 million in the same period last year. The company's gross margin also improved to 52%, up two percentage points from a year ago.

AMD's Data Center segment was the key growth driver, posting $4.34 billion in revenue, up 22% year-on-year, largely fueled by robust demand for AI GPUs. The Client segment generated $2.75 billion, marking a 46% increase, while the Gaming segment surged 181% to $1.3 billion, boosted by strong console demand.

In the AI chip market, AMD is rapidly closing the gap with NVIDIA. Last month, the company announced a significant partnership with OpenAI, which plans to deploy up to 6 gigawatts of AMD's Instinct GPUs over the next few years and may acquire up to 10% of AMD's shares. Additionally, Oracle revealed plans to integrate 50,000 AMD Instinct MI450 AI chips into its cloud infrastructure starting next year — a move that further strengthens AMD's position in high-performance AI computing.

Looking ahead, AMD offered an optimistic outlook for the fourth quarter, forecasting revenue of around $9.6 billion, a 25% year-on-year increase. However, the company expects an adjusted gross margin of 54.5%, in line with market forecasts — a factor that led to a slight dip in its share price during after-hours trading.