Advanced Micro Devices (AMD) reported Q3 earnings of $1.20 per share, beating estimates by 2.56%. Revenues of $9.25 billion also surpassed expectations, with Data Center revenues up 22.3% YoY. Client and Gaming segment revenues soared, while Embedded segment revenues declined. Gross margins expanded to 54%. Q4 guidance is positive, with expected revenues of $9.6 billion.

AMD’s partnership base includes companies like OpenAI, HPE, Dell, and more, driving growth. The company launched new processors and saw strong demand for its products. Operating income surged in Client and Gaming segments, while Data Center operating income turned around from a loss. The balance sheet shows strong cash flow and free cash flow margin.

Investors have seen a flat trend in estimates revision for AMD. The company has a nice Growth Score of B but lags in Momentum and Value Scores. Overall, AMD has an aggregate VGM Score of D. With a Zacks Rank #3 (Hold), the stock is expected to have an in-line return in the next few months.

Read more at Nasdaq: Why Is Advanced Micro (AMD) Down 15.1% Since Last Earnings Report?