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AMD rides data center riches to ‘largest and most profitable’ quarter in history
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- DeepHorus
AMD reported record revenue of $13.4 billion for the third quarter of 2026, and CEO Lisa Su called it “the largest and most profitable” quarter in the company’s history. The chipmaker forecast $17 billion in revenue for the next quarter, which would set another record. Growth was driven by its data center business.
AMD’s data center unit generated $8.5 billion in the quarter, roughly 63 percent of net quarterly revenue. In recent years, the company’s overall growth has closely mirrored data center demand. Total revenue rose $1.9 billion in Q3 2026, while data center revenue rose $1.8 billion.
CFO Jean Hu said AMD expects its data center business to account for more than 80 percent of total company revenue looking ahead of 2027. Su said AMD expects revenue to grow more than 80 percent in 2027, with data center as the largest contributor. The company is betting on continued AI infrastructure demand.
Not all segments shared in the gains. Gaming revenue fell 40 percent year over year to $773 million. PC, console and other hardware prices have risen amid shortages of RAM and other components, driven by demand from AI data centers. Intel said it does not expect the shortage to improve next year, and SK Hynix predicted it will last until 2030.
Su acknowledged that higher component prices affect overall system pricing. Consumer markets are more sensitive, and AMD has seen a slowdown in sell-through, she said. Su added that AMD is planning with the current environment for a down year in 2027.
The results highlight AMD’s growing reliance on data center customers even as consumer hardware struggles. Record data center revenue and the $17 billion forecast underscore that shift. AMD’s next test will be sustaining growth while supply constraints persist.
