04:50 PM EST, 11/04/2025 (MT Newswires) -- Advanced Micro Devices' ( AMD ) third-quarter results rose above Wall Street's estimates as the chipmaker continued to benefit from strong demand for its processors and artificial intelligence chips.

Adjusted earnings per share rose to $1.20 from $0.92 a year earlier, compared with the $1.17 consensus on FactSet. Revenue increased 36% to $9.25 billion, above $8.76 billion modeled by analysts.

"We delivered an outstanding quarter, with record revenue and profitability reflecting broad-based demand for our high-performance EPYC and Ryzen processors and Instinct AI accelerators," Chief Executive Lisa Su said in a statement.

Data center revenue gained 22% to $4.34 billion, while the client and gaming division soared 73% to $4.05 billion.

The results didn't include revenue from shipments of AMD Instinct MI308 graphics processing unit products to China, AMD said.

The company expects fourth-quarter revenue of $9.6 billion, plus or minus $300 million. The consensus is for $9.21 billion.

AMD's results and guidance came out on a day that saw a tech-driven selloff in equity markets amid AI valuation concerns. The company's stock closed 3.7% lower on Tuesday and was down 3.1% in extended trading.

Last month, AMD agreed to deploy 6 gigawatts of its GPUs to power Microsoft (MSFT)-backed OpenAI's artificial intelligence infrastructure. The ChatGPT parent will work with AMD as a core strategic compute partner to drive large-scale deployments of AMD technology.

BofA Securities on Oct. 16 lifted its price target on AMD's stock to $300 from $250, citing greater AI visibility through 2027.

Assuming 100% deployment of 6 GW over four years, AMD's 2027 EPS could reach $10 to $11 by 2027, the brokerage said in a note.