Advanced Micro Devices Inc (NASDAQ:AMD) stock rose 0.56% (As on November 5, 11:09:35 AM UTC-4, Source: Google Finance) after the company reported fiscal third-quarter results that exceeded Wall Street expectations, but gave margin guidance was inline with estimates. Net income climbed to $1.24 billion, or 75 cents per share, from $771 million, or 47 cents per share, a year earlier. The company have received some licenses for MI308, so they are appreciative of the administration supporting some licenses for MI308. AMD reached a deal with OpenAI last month that could see the AI startup company take a 10% stake in the chipmaker. OpenAI will deploy 6 gigawatts of AMD’s Instinct graphics processing units over multiple years and across multiple generations of hardware, the companies said, beginning with an initial 1-gigawatt rollout of chips in the second half of next year.

Moreover, AMD’s data center business, which includes standard central processing units and GPUs for AI, generated $4.34 billion in fiscal third-quarter revenue, up 22%. Analysts polled by StreetAccount were looking for $4.13 billion. This was  primarily driven by “strong demand for 5th Gen AMD EPYC processors and AMD Instinct MI350 Series GPUs. The jump revenue didn’t include any revenue from shipments of AMD Instinct MI308 GPU products to China following the U.S. ban on chipmaking equipment to China. Client revenue reached $2.75 billion, which was up 46% and more than StreetAccount’s $2.61 billion consensus. Revenue from gaming totaled $1.30 billion, up 181%. StreetAccount’s consensus was $1.05 billion. Microsoft and Sony ramped up production of their respective Xbox and PlayStation video game consoles ahead of the holiday season, leading to growth in semi-custom chip revenue for AMD. In addition, AMD and the U.S. Department of Energy have announced two new next-generation supercomputers.

AMD in the third quarter of FY25 has reported the adjusted earnings per share of $1.20, beating the analysts’ estimates for the adjusted earnings per share of $1.16, according to LSEG consensus. The company had reported the adjusted revenue growth of 36 percent to $9.25 billion in the third quarter of FY25, beating the analysts’ estimates for revenue of $8.74 billion. On a non-GAAP basis, gross margin was 54% and operating income was $2.2 billion.

For the fourth quarter, AMD expects about $9.6 billion in revenue, implying 25% growth. That’s above LSEG’s $9.15 billion consensus. AMD sees an adjusted gross margin of 54.5% for the quarter, meeting StreetAccount’s consensus of 54.5%.