AMD reports $13.4 billion in quarterly revenue as data center sales surge

Advanced Micro Devices posted its highest quarterly earnings in company history during the third quarter of 2026. CEO Lisa Su stated that the period was the largest and most profitable in the firm's record. The company brought in $13.4 billion in revenue for the three-month stretch ending in September.

The financial jump was driven almost entirely by infrastructure hardware. The data center division contributed $8.5 billion to the total. This segment now represents about 63 percent of AMD's net quarterly revenue. In the same period, the gaming business saw revenue drop 40 percent from the previous year, landing at $773 million.

AMD's shift toward data centers has accelerated over the last two years. In the third quarter of 2026, total company revenue increased by $1.9 billion. Of that increase, $1.8 billion came from the data center sector. CFO Jean Hu told investors that looking ahead to 2027, the data center business is projected to account for more than 80 percent of total company revenue.

The company expects its next quarter to set another record. AMD forecasts $17 billion in revenue for the fourth quarter of 2026. Su also indicated that overall revenue growth is expected to exceed 80 percent in 2027, with the data center unit serving as the primary engine for that expansion.

The surge in demand for AI infrastructure has created supply chain tightness. Shortages of RAM and other components have forced price hikes across PCs and game consoles. Intel stated it does not expect the shortage to improve next year. SK Hynix predicted the constraint will persist until 2030.

Su acknowledged that rising component costs are affecting system pricing. She noted that consumer markets are more sensitive to these price changes. "We have seen a bit of a slowdown in the sell-through," Su said. She added that the company is planning for a down year in 2027 due to the current market environment.