Positive impactEconomy
AMD forecasts fourth-quarter revenue above estimates on strong AI chip demand
Economic Times 1 hr ago·4 Nov 2026, 5:26 am
Advanced Micro Devices has raised its revenue forecast for the upcoming quarter, projecting sales of roughly $17 billion. This optimistic outlook is largely driven by a surge in demand for its artificial intelligence (AI) chips, which are critical for powering modern data centers. The company also reported a massive 97% jump in data-center revenue compared to the previous year, highlighting its strong performance in this high-growth sector.
For investors, this news signals that AMD is successfully capturing market share in the lucrative AI race. However, the company has noted a supply chain bottleneck, specifically a shortage of high-bandwidth memory, which could limit its ability to meet current demand. Investors should monitor how quickly AMD resolves this inventory issue and whether it can sustain its growth momentum in the coming quarters.
Excerpt from Economic Times
Advanced Micro Devices estimates its fourth-quarter revenue will hit about $17 billion, driven primarily by robust demand for AI chips. Although the company's forecast for adjusted gross margin stands at 55%, it falls slightly short of analyst expectations. A remarkable 97% year-on-year increase in data-centre revenue…Read the original at Economic Times
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- Category: Economy.
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