Advanced Micro Devices Inc. delivered record third-quarter financial results driven by nearly doubled data center revenue, while issuing a robust fourth-quarter forecast.
- Third-quarter revenue jumped 45% year-over-year to $13.4 billion.
- Sales in the data center division surged 97% to $8.5 billion, propelled by rapid adoption of processors and Instinct AI accelerators.
- AMD projected fourth-quarter revenue of approximately $17 billion, higher than analyst expectations.
Advanced Micro Devices Inc.(AMD) reported a 45% surge in third-quarter revenue to a record $13.4 billion on Tuesday, bolstered by soaring demand for artificial intelligence processors and data center chips.
The Santa Clara, California-based chipmaker easily cleared Wall Street forecasts as data center sales nearly doubled, securing AMD’s position as a chief challenger to Nvidia Corp. (NVDA) in the AI hardware market.
Adjusted earnings per share climbed 74% year-over-year to $2.09 per share, comfortably beating analysts’ expectations of $13.1 billion and earnings of $1.97 per share.
Data Center Surges As Gaming Lags
AMD’s Data Center segment spearheaded the quarter’s growth, posting revenue of $8.5 billion, up 97% from the prior-year period. Demand for the company’s EPYC server CPUs and Instinct MI450 series AI accelerators drove the expansion. Top cloud providers and AI leaders, including Microsoft (MSFT), Meta (META), OpenAI, Anthropic, and Oracle (ORCL), have deployed AMD’s flagship server solutions.
However, sales across personal computer and gaming sectors faced headwinds. Combined Client and Gaming revenue dropped 8% to $3.7 billion. While desktop and laptop PC chip sales rose 7% to $2.9 billion, the gaming segment slumped 40% to $773 million due to lower semi-custom console component orders. Industry-wide memory chip shortages and rising component prices also weighed on traditional consumer PC demand.
“We delivered a record quarter with revenue exceeding the high end of our guidance,” said Dr. Lisa Su, AMD chair and chief executive officer. “Demand for our Instinct and EPYC products continued to strengthen, and we expect growth to accelerate further.”
Fourth-Quarter Outlook
For the fourth quarter of 2026, AMD expects revenue to reach approximately $17 billion, plus or minus 3%. The midpoint represents a 66% increase year-over-year and comfortably tops the average analyst projection of $16.3 billion.
Chief Financial Officer Jean Hu noted that the positive guidance is anchored by accelerating demand across the data center division as new production ramps up for the company’s next-generation architectures.
“We now expect data center segment revenue growth to accelerate in the fourth quarter and full-year segment revenue to more than double from 2025,” Su said in an earnings call. “We now expect server revenue to double year-over-year in 2027 and data center AI revenue to grow even faster than we projected 90 days ago.”
“We now expect revenue to grow more than 80% in 2027,” Su added.
AMD Stock: Retail View
Retail sentiment on Stocktwits was ‘extremely bullish’ with ‘high’ message volumes.
AMD stock has surged about 129% year-to-date.
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