Nvidia competitor AMD has achieved a record-breaking performance, driven by a surge in demand for artificial intelligence (AI) data center chips.

AMD announced on the 3rd, local time, that its third-quarter revenue rose 45% year-over-year to $13.38 billion (approximately KRW 18 trillion).

This figure not only surpasses Wall Street expectations of $13.09 billion compiled by market research firm London Stock Exchange Group (LSEG), but also sets a new record by breaking AMD's highest quarterly revenue of all time.

Adjusted earnings per share (EPS) also surged 74% compared to the same period last year to reach $2.09, exceeding market analysts' expectations of $1.95.

The main driver of this financial growth was the data center segment, which produces AI accelerators and central processing units (CPUs) for servers.

Third-quarter data center revenue skyrocketed 97% year-over-year to $8.55 billion, accounting for about two-thirds of total revenue.

AMD explained that strong sales of new GPU products, such as the latest 'Instinct MI455X' AI accelerator, and the 6th-generation 'EPYC' CPUs drove this growth.

Revenue from the embedded segment, used in sectors such as aerospace, defense, and automotive, also grew by 29.4% from $860 million to $1.11 billion.

However, revenue in the client and gaming segment declined by about 8%.

This is estimated to be the impact of the PC market slump resulting from a memory shortage crisis.

AMD issued guidance projecting that this growth trend will continue, with fourth-quarter revenue surging 66% year-over-year to reach $17 billion (approximately KRW 22.9 trillion).

This figure exceeds the average analyst estimate of $16.2 billion.

CEO Lisa Su stated, "Demand for Instinct and Epyc products continues to strengthen," adding, "As the production of 'Helios' servers (AI racks) and next-generation 'Venice' CPUs shifts into full gear, growth will accelerate further in the fourth quarter."

Fueled by earnings anticipation, AMD's stock rose 3.65% in regular trading and surged about 7% in after-hours trading following the earnings release, fluctuating around the $518 level as of 5:20 PM Eastern Time.

AMD has been solidifying its position as an alternative to Nvidia's chips in the AI infrastructure ecosystem by consecutively expanding partnerships with major big tech companies recently.

Anthropic, Meta, Microsoft (MS), OpenAI, and Oracle have adopted AMD's AI rack Helios.

Meanwhile, AMD announced in September that it would expand into the physical AI sector by acquiring 'World Labs', a 'world model' startup founded by Fei-Fei Li, who is often called the 'godmother of AI'.

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