AMD data center sales nearly double; shares up 5% pre-market

AMD's report lands after a sharp pullback: by Nov. 2 the stock had fallen about 28% from its Oct. 6 record close, so the near-doubling of data center sales and the guidance for fourth-quarter revenue about two-thirds higher arrived as a marked contrast to that slide. The shares rose about 5% in pre-market trading this morning, suggesting investors focused on the sales figures rather than the prior decline.

That rebound also sits alongside a longer story. Team Rule Breakers recommended AMD in Stock Advisor on Jan. 18, 2024, at $162.67, weeks after the company launched its MI300 AI chips, and the stock has roughly tripled since, comfortably ahead of the S&P 500. In server processors, AMD has steadily won share from Intel by many measures, and Intel's stock fell nearly 29% on Oct. 30 after a weak forecast. In AI chips, however, AMD's position is newer and likely less secure, and it effectively paid to land two of its biggest deals by giving OpenAI and Meta warrants for up to 160 million shares each, or about 20% of its share count combined.