AMD beat third-quarter estimates, with revenue of $13.38 billion against $13.08 billion expected and adjusted EPS of $2.09 against $1.97, while data center revenue rose 97% to $8.5 billion. It guided to about $17 billion of fourth-quarter revenue, plus or minus 3%, and CEO Lisa Su expects revenue to grow more than 80% in 2027. GAAP results included a $1.1 billion charge, or $0.66 a share, for penny-a-share warrants granted to OpenAI and Meta, a charge that will grow as AMD’s stock rises and chips ship but does not affect adjusted earnings or free cash flow. Free cash flow fell to $554 million, about 4% of revenue, as inventory rose to a record $11.5 billion. AMD trades at 42x forward earnings, above its three-year average of 39x.
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