AMD stock surges over 7% as AI chip boom drives 97% growth in data center sales

AMD shares shot up more than 6% Tuesday night after the chipmaker said its data center business grew 97% in the third quarter. The AMD stock surged by as much as 8% after hours as investors got the numbers they wanted: bigger AI sales, higher profits, and a forecast that topped Wall Street’s expectations. Revenues jumped 45% to $13.38 billion from $9.25 billion last year. The analysts, who were surveyed by LSEG, were expecting revenues of $13.09 billion. Earnings per share hit $2.09, topping the estimate of $1.95. The rally came at an interesting time. AMD had fallen for three straight sessions as investors questioned whether Silicon Valley was throwing too much money at AI infrastructure. Even with that wobble, the stock is up roughly 125% this year.

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