5 Best Q3 Earnings Reports That Crushed Estimates

4. Advanced Micro Devices, Inc. (NASDAQ:AMD)

Number of Hedge Fund Holders: 112

Last month, Advanced Micro Devices, Inc. (NASDAQ:AMD) posted strong Q3 results but its shares fell amid a downbeat guidance. Advanced Micro Devices, Inc. (NASDAQ:AMD)’s adjusted EPS in the quarter came in at $0.70 beating estimates by $0.02. Revenue in the period came in at $5.8 billion, which was an increase of 4.1% on a YoY basis, beating estimates by $110 million. In the fourth quarter of 2023, Advanced Micro Devices, Inc. (NASDAQ:AMD) expects its revenue to come in at $6.1 billion, plus or minus $300 million, below the $6.4 billion estimates. This is mainly due to the weakness in the gaming segment.

Advanced Micro Devices, Inc. (NASDAQ:AMD) talked in detail about its AI plans and products in Q3 earnings call:

“Based on the rapid progress we are making with our AI road map execution and purchase commitments from cloud customers, we now expect Data Center GPU revenue to be approximately $400 million in the fourth quarter and exceed $2 billion in 2024 as revenue ramps throughout the year.

This growth would make MI300 the fastest product to ramp to $1 billion in sales in AMD history. I look forward to sharing more details on our progress at our December AI event. Turning to our Client segment. Revenue increased 42% year-over-year and 46% sequentially to $1.5 billion. Sales of our Ryzen 7000 processors featuring our industry-leading Ryzen AI on-chip accelerator, grew significantly in the quarter as inventory levels in the PC market normalized and demand began returning to seasonal patterns. Revenue for our latest-generation client CPUs powered by our Zen 4 core more than doubled sequentially as we saw strong demand for our Ryzen 7000 Series notebook and desktop processors that deliver both leadership energy efficiency and performance across a wide range of workloads.

In commercial, we launched our first Threadripper Pro workstation CPUs based on our Zen 4 Core that deliver unmatched performance for multi-threaded professional design, rendering and simulation applications. Dell, HPE and Lenovo announced an expanded set of workstations powered by new Threadripper Pro processors as we focus on growing this margin-accretive portion of our client business. Looking forward, we are executing on a multiyear Ryzen AI road map to deliver leadership compute capabilities built on top of Microsoft’s Windows software ecosystem to enable the new generation of AI PCs that will … [read the full earnings call transcript here]”