Advanced Micro Devices (AMD) posted a blockbuster third quarter, beating Wall Street forecasts and unveiling a high-stakes partnership with OpenAI that could generate over $100 billion in revenue.
Quick Summary – TLDR:
- AMD reported Q3 revenue of $9.25 billion and EPS of $1.20, beating analyst estimates.
- The company issued strong Q4 guidance, projecting up to $9.9 billion in revenue.
- A multi-year partnership with OpenAI could drive more than $100 billion in future revenue.
- AMD will provide 6 gigawatts of compute power to OpenAI, positioning itself as a key AI player.
What Happened?
AMD delivered an impressive financial performance in Q3 2025, exceeding both revenue and earnings expectations. At the same time, it revealed a game-changing deal with OpenAI that could potentially reshape its role in the AI industry. CEO Lisa Su expressed confidence that this collaboration would accelerate AMD’s expansion in the data center AI market.
$AMD AMD Q3 FY25:
— App Economy Insights (@EconomyApp) November 4, 2025
• Revenue +36% Y/Y to $9.2B ($0.5B beat).
• Operating margin 14% (+3pp Y/Y).
• Non-GAAP EPS $1.20 ($0.03 beat).
• Q4 revenue +25% Y/Y to $9.6B ($0.4B beat). pic.twitter.com/Yc2a1XP2n8
AMD Surpasses Expectations in Q3
In the third quarter, AMD reported earnings per share of $1.20 on $9.25 billion in revenue. Analysts had expected $1.17 EPS and $8.74 billion in revenue. This marks a 36 percent increase in revenue compared to the same period last year.
AMD’s performance was strong across its major business segments:
- Data Center revenue reached $4.3 billion, surpassing expectations of $4.1 billion.
- Client segment, which includes desktop and laptop chip sales, hit $2.9 billion (vs $2.6 billion expected).
- Gaming revenue came in at $1.3 billion, also ahead of forecasts.
The company expects an even stronger fourth quarter, forecasting revenue between $9.3 billion and $9.9 billion, well above Wall Street’s $9.21 billion projection.
OpenAI Partnership: A $100 Billion Game Changer
The most headline-grabbing announcement came during the earnings call, where CEO Lisa Su detailed AMD’s multi-year partnership with OpenAI. Su stated this deal could eventually bring in over $100 billion in revenue.
Key details of the deal include:
- Deployment of 6 gigawatts of compute power using AMD’s Instinct GPUs.
- The first gigawatt of MI450 accelerators will be activated in the second half of 2026.
- OpenAI will purchase up to 160 million AMD shares, representing about 10 percent of the company.
“The partnership establishes AMD as a core compute provider for OpenAI and underscores the strength of our hardware, software, and full-stack solutions strategy,” Su said.
AMD and OpenAI will also collaborate on future hardware, software, and system-level roadmaps, which could deepen AMD’s role in shaping the future of AI infrastructure.
Oracle and Government Deals Strengthen AI Push
Beyond OpenAI, AMD also announced a separate agreement with Oracle to supply up to 50,000 GPUs for Oracle’s cloud data centers. In addition, AMD is supplying chips to power two Department of Energy supercomputers at Oak Ridge National Laboratory, part of a $1 billion public-private investment.
These partnerships signal AMD’s broader ambitions in the AI and high-performance computing market, as it seeks to gain ground on rivals like Nvidia, which still dominates the AI chip space with a market cap over $5 trillion, compared to AMD’s $418 billion.
Daily Research News Takeaway
This is one of those moments that shows just how fast the AI race is evolving. AMD didn’t just have a great quarter, it positioned itself for a major leap forward. That $100 billion potential from the OpenAI deal is jaw-dropping and signals a long-term commitment to building the backbone of AI. I see this not just as good news for investors, but a clear sign that AMD is stepping into the AI big leagues. The next few years will be a critical test of how well they can scale, but for now, they’ve made all the right moves.
