The company said its non-GAAP earnings per share were 4 cents, beating expectations of 2 cents a share.
AMD said on Thursday its third-quarter revenue was $1.46 billion, compared to $1.27 billion in the same quarter last year.
"AMD returned to profitability and generated free cash flow in the third quarter as we continued to successfully execute the strategic transformation plan we outlined a year ago," said Rory Read, AMD president and CEO. "We achieved 26 percent sequential revenue growth driven by our semi-custom business and remain committed to generating approximately 50 percent of revenue from high-growth markets over the next two years. Developing industry-leading technology remains at our core, and we are in the middle of a multi-year journey to redefine AMD as a leader across a more diverse set of growth markets."