Advanced Micro Devices continues to reap gains from growing traction for its Zen-based processors, which have advantages over rival Intel.

For the third quarter, AMD reported revenues 40 percent to $1.65 billion in the third quarter ended September 30, compared to the same quarter a year ago. Net income was $150 million, or 13 cents a share, compared with $100 million, or 9 cents a share, a year earlier.

Analysts had expected AMD to report earnings per share of 13 cents and revenues of $1.7 billion. In after-hours trading, AMD is getting hammered, even more so than the rest of the stock market. AMD stock is down 22.55 percent at $17.65 a share.

AMD has been steadily marching out new versions of its Zen-based CPUs, including Ryzen for consumer PCs and Epyc for servers.

“We delivered our fifth straight quarter of year-over-year revenue and net income growth driven largely by the accelerated adoption of our Ryzen, Epyc and data center graphics products,” said Lisa Su, AMD president and CEO, in a statement. “Client and server processor sales increased significantly although graphics channel sales were lower in the quarter. Looking forward, we believe we are well positioned for further market share gains as we continue making significant progress towards our long-term financial targets.”

AMD has been rolling out its second-generation Ryzen desktop chips. The Zen-based architecture can process 52 percent more instructions per clock than the previous generation. AMD rolled out its first Zen-based Ryzen chips in the spring of 2017, and now the Zen technology is spreading through the whole product line.

Since the PC market isn’t growing at 40 percent, and since rival Intel also isn’t growing that fast, it’s logical to conclude that AMD’s latest processors are grabbing market share.

Back in February, AMD launched Ryzen mobile accelerated processing units, which combine a processor and graphics on a single chip. AMD said revenue was up thanks to higher client revenue for Computing and Graphics division chips. Graphics revenue was lower in the third quarter compared to the prior quarter, as AMD’s graphics chips aren’t as competitive as Nvidia’s.

Computing and Graphics revenue was $938 million, up 12 percent from a year ago. Blockchain graphics processing unit (GPU) sales in the third quarter were negligible. GPU average selling prices were down from a year ago and the prior quarter, due to lower channel sales.

For the fourth quarter, AMD expects revenue of $1.45 billion, plus or minus $50 million, an increase of 8 percent over the same quarter a year earlier.

“AMD met revenue forecasts (albeit the lower range), but beat on earnings and improved gross margins,” said Patrick Moorhead, analyst at Moor Insights & Strategy. “Its performance was strong, in part, to rapid adoption of Ryzen and continued progress with Epyc.”

He added, “I am not concerned with GPU channel inventory mid-term as I believe AMD leadership sufficiently described what happened and why. I wasn’t expecting much from the graphics division this quarter anyways. In the future, I am not expecting any major change in GPU market dynamics until 7nm Navi launches, which I believe will improve its position, particularly in the enterprise market.”

Moorhead was surprised not to see bigger upsides in processor volumes based on Intel’s reset, but he said he thinks this is just conservative forecasting. He sees increased interest in AMD’s product roadmap.