AMD Reports Record Quarter as Data Center Business Thrives

AMD CEO Lisa Su announced a remarkable achievement during the company’s recent earnings call, revealing that the third quarter of 2026 marked the largest and most profitable period in the company’s history. AMD posted an impressive $13.4 billion in revenue, with projections indicating that the upcoming quarter could reach an unprecedented $17 billion.

Driving this growth is AMD’s data center segment, which generated $8.5 billion in revenue for Q3 2026. Su expressed optimism for the future, stating that the company anticipates revenue to grow by over 80 percent in 2027, with the data center division being the primary contributor.

Looking beyond 2027, Jean Hu, CFO of AMD, emphasized the potential of the data center business, projecting that it could represent more than 80 percent of the company’s total revenue. Currently, approximately 63 percent of AMD’s quarterly revenue comes from this segment.

The correlation between the company’s overall financial health and its data center growth is notable. In Q3 2026, AMD saw a revenue increase of $1.9 billion, with the data center revenue itself rising by $1.8 billion during the same timeframe.

Despite the positive developments in the data center space, AMD’s gaming division encountered significant challenges, experiencing a 40 percent decline compared to the previous year, resulting in just $773 million. This drop reflects broader issues facing the PC and gaming console markets, including price increases attributed to supply shortages of RAM and other components, driven by surging demand from AI data centers. Notably, Intel has indicated that it does not foresee an improvement in this shortage in the coming year, while SK Hynix has warned that it may extend until at least 2030.

Su acknowledged these price increases, stating, “Our view is, this is one of those times — when component prices go up, it affects overall system pricing. One would expect the consumer markets to be more sensitive to that, and so we have seen a bit of a slowdown in the sell-through.” She further indicated that AMD is preparing for a potentially challenging year in 2027.