AMD reported strong Q3 results, with data center revenue up 97% to $8.5 billion on demand for Epyc CPUs and MI450 GPUs. Total revenue rose 45% to $13.38 billion, and adjusted EPS climbed 74% to $2.09, above the $1.95 consensus. Q4 revenue is guided at $17 billion, plus or minus 3%, above the $16.2 billion analyst consensus, and 2027 revenue is projected to rise 80%. Free cash flow fell to $554 million from $1.5 billion a year earlier, while total debt more than doubled to $7.1 billion. The author rates AMD's growth prospects highly, citing a forward P/E of 31 times 2027 estimates and a PEG ratio of 0.3.
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