AMD stock crashed 3.7% to $250.05 despite posting record Q3 2025 earnings. The chipmaker reported $9.25 billion in revenue, up 36% year-over-year, and $1.20 EPS, beating forecasts. Strong AI chip demand and new deals with OpenAI and Oracle pushed data center revenue to $4.

Advanced Micro Devices forecast fourth-quarter revenue above market estimates on Tuesday, betting on the multibillion-dollar expansions of data center infrastructure to boost demand for its artificial intelligence chips.

AMD said Tuesday that a “sharp” jump in sales for the company’s CPUs across the PC and segments as well as its Instinct data center GPUs allowed it to deliver a record revenue of $9.2 billion for the third quarter as it teased deeper ties with OpenAI.

In other words, it is possible to be more confident about the company's continued operational momentum for the rest of the year, as Dr. Lisa Su (AMD's CEO) mentioned in the earnings release: "Our record third quarter performance and strong fourth quarter guidance marks a clear step up in our growth trajectory as our expanding compute franchise and rapidly scaling data center AI business drive significant revenue and earnings growth.

While this deal is important for AMD, what it really signaled was that a leading generative AI company plans on using AMD's hardware. That's a big deal, as AMD's technology has always been seen as a downgrade from Nvidia.