Advanced Micro Devices reported record third-quarter revenue on Tuesday, beating Wall Street estimates as its data-centre division surged on the first volume shipments of its Instinct MI450 artificial-intelligence accelerators. The Santa Clara, California-based chipmaker also forecast fourth-quarter revenue above analyst expectations.

The company said data-centre revenue grew at its fastest pace in more than two years, driven by its Instinct GPUs and continued demand for its EPYC server processors. Chief executive Lisa Su told analysts on the earnings call that the MI450 ramp and the company's Helios rack-scale systems were proceeding on schedule. Adjusted earnings per share came in ahead of the consensus compiled by LSEG.

The quarter marked the first in which revenue from AMD's multi-year supply agreement with OpenAI, announced in October 2025, began to flow in meaningful volume. Under that deal, OpenAI committed to deploying six gigawatts of AMD accelerators, starting with one gigawatt in the second half of 2026. AMD also said its client and gaming segments grew year on year, helped by Ryzen processor sales.

Shares in AMD rose in extended trading on the Nasdaq after the release. Analysts at Bernstein and Morgan Stanley had flagged the MI450 launch as the central test of whether AMD could become a credible second supplier to Nvidia in AI computing. The results were likely to reinforce investor confidence that hyperscale customers are diversifying their chip purchases.

The report landed in the middle of a US earnings season dominated by AI spending, with Microsoft, Alphabet, Amazon and Meta all signalling higher capital expenditure for 2027. AMD has set a target of data-centre revenue growth above 60 per cent a year over the next three to five years, a goal set out at its financial analyst day in November 2025.