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The Q3 earnings season is slowly grinding to a halt, with just a small chunk of S&P 500 companies yet to reveal their quarterly results. We’ll hear from a few more members this week, with the retail sector primarily dominating the docket.

And throughout the period, several popular companies, including Advanced Micro Devices (AMD - Free Report) and Apple (AAPL - Free Report) , posted quarterly records. Let’s take a closer look at each release.

AMD Posts Record Data Center Sales
 

Advanced Micro Devices posted strong growth in its release, with EPS growing 31% on the back of 17% higher sales. Margin expansion helped drive higher profitability, with its reported gross margin of 54% well above the 47% mark in the year-ago period.

Please note that the margins chart below is on a trailing twelve-month basis.

Image Source: Zacks Investment Research

Impressively, AMD is now on track to deliver record annual revenue for 2024 thanks to significant growth among its Data Center and Client segments. Notably, Data Center revenue of $3.5 billion reflected a quarterly record and climbed an astonishing 122% from the same period last year.  

AMD’s data center results have regularly exceeded our consensus expectations in recent quarters, as we can see below.

Image Source: Zacks Investment Research

The stock didn’t see a great post-earnings reaction despite the favorable Data Center results, with analysts also downwardly revising their earnings expectations following the release. Weaker-than-expected sales forecasts have been a driver behind the negative share sentiment over recent months, also explaining the downward estimate revisions.

Apple Reports Record Sales 
 

Concerning headline figures in Apple’s latest release, EPS grew 12% year-over-year alongside a 6% sales increase, with the company exceeding both of our consensus estimates. Shares didn’t see a strong reaction initially but have since recovered, up nearly 20% in 2024 overall.

Impressively, iPhone strength drove record September-quarter sales of $69.9 billion, with Services revenue also reaching a new all-time high. As shown below, the company has delivered back-to-back positive surprises against our consensus iPhone expectations.

Image Source: Zacks Investment Research

It’s also worth noting that the stock has been negatively impacted by slowing China sales, a trend that investors have become accustomed to over the last year. However, the recent set of results delivered some positivity on this front, with sales in China of $15.0 billion flat year-over-year.

While we’d like to see actual growth for Apple return to China, the recent results flash a bit of positivity concerning comps. As we can see below, the company has regularly fallen short of our consensus China expectations over recent quarters.

Image Source: Zacks Investment Research

Bottom Line
 

It’s been a record-breaking earnings season for a few companies, a list that includes beloved Apple and Advanced Micro Devices.

Both companies’ results were overall positive, though analysts were expecting a bit higher sales forecast from AMD given the current AI frenzy. AMD continues to gain momentum in its Data Center, however, posting record sales in its Q3 release. While the stock hasn’t benefited as much as others involved in the AI trade, it still should remain a prime watchlist candidate for those seeking exposure to AI.

Apple’s reaction was somewhat negative, though shares have made up ground since. The company’s results have been hampered by slowing China sales, though its Services results have helped pick up the slack nicely. And with iPhone momentum showing back up, the stock remains a prime selection for investors seeking technology exposure paired with rock-solid fundamentals.

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