AMD Guides $17B Q4 Revenue as Data Center Share Hits 64% While Free Cash Flow Margin Falls to 4%

AMD's third-quarter results showed data center revenue reaching $8.55 billion, 64% of total sales, up from 47% a year earlier. Client and gaming segments contracted in absolute terms. The $17 billion Q4 guide implies roughly 43% sequential data center growth driven by MI450 Helios rack shipments to Anthropic, Meta, Microsoft, OpenAI and Oracle. Free cash flow margin compression to 4% from 17% stems partly from $1.1 billion in customer warrant costs and heavy AI-related working capital needs. The pattern mirrors other AI-exposed names where revenue acceleration masks cash generation weakness. Intel's recent PC demand warning further isolates AMD's performance to hyperscale capex cycles. Primary documents confirm segment operating income in data center rose to a 34% margin, yet overall cash conversion deteriorated. Next quarter will test whether the Helios ramp sustains both revenue and cash metrics. If data center exceeds $12 billion while free cash flow margin remains below 8%, investor focus will shift from top-line beats to balance sheet strain.