Advanced Micro Devices reported third-quarter revenue of $13.38 billion, up 45% from $9.25 billion a year earlier, according to the company statement.
The report was released Tuesday and covers the quarter ended in September 2026. The company described the period as a record quarter, with revenue exceeding the high end of its own guidance.
The results arrived amid a broad sell-off in chip shares tied to investor questions about the scale of spending on artificial intelligence infrastructure. AMD stock had lost more than a quarter of its value over the prior month before rallying on the day of the report, according to ZeroHedge [1].
Data center segment accounts for 64% of revenue
Data center revenue nearly doubled from a year earlier and represented 64% of overall revenue, up from 47% a year earlier, the company said [2]. MarketWatch reported the data center business recorded $8.5 billion in revenue for the quarter, topping analysts' estimates of $8.2 billion on FactSet [3]. AMD's press release stated that Data Center segment revenue grew 97% year-over-year, driven by record sales of AMD Instinct GPUs and AMD EPYC CPUs [4].
Su said on the earnings call that she expects server revenue to double year over year in 2027 and data center AI growth to accelerate faster than the company had projected 90 days ago, CNBC reported [5]. Su said AMD has secured the wafers, substrates, advanced packaging, memory and other components needed to support higher growth next year.
PC and gaming segment revenue declines
Gaming revenue was down 40% from a year ago, according to the report.
Supply conditions in memory markets have been a recurring theme across the industry; Chinese firms CXMT and YMTC have been flooding the global memory chip market with domestically produced DRAM and NAND chips, driving down prices, according to NaturalNews.com [6].
The PC weakness stands in contrast to the data center business. The divergence means the company's results are increasingly shaped by demand from a handful of large cloud and AI customers rather than by consumer hardware cycles.
Competitive and supply context
The Helios system was unveiled at AMD's Advancing AI conference in San Francisco in July, with Microsoft among the named customers, TechCrunch reported [7].
Competition in AI accelerators remains concentrated.
Fourth-quarter guidance and market reaction
The stock pared earlier gains after the report as election results came in, according to the report.
Market reaction to the report unfolded against a broader political backdrop.
References
- AMD Soars After Blowout $17 Billion Guide... As Free Cash Flow Quietly Shrinks To 4% Of Revenue. https://www.zerohedge.com/markets/amd-soars-after-blowout-17-billion-guide-free-cash-flow-quietly-shrinks-4-revenue
- AMD (AMD) Q3 2026 Earnings Call Transcript | The Motley Fool. https://www.fool.com/earnings/call-transcripts/2026/11/04/amd-amd-q3-2026-earnings-call-transcript/
- AMD's data-center revenue almost doubled in the third .... https://www.marketwatch.com/livecoverage/amd-earnings-stock-results-q3/card/amd-s-data-center-revenue-almost-doubled-in-the-third-quarter-tfAvBZ02MuXQbIXyHAaD?mod=mw_FV
- AMD Reports Third Quarter 2026 Financial Results. https://ir.amd.com/news-events/press-releases/detail/1303/amd-reports-third-quarter-2026-financial-results
- AMD Beats on Q3 as Data-Center Sales Nearly Double. https://www.findarticles.com/amd-q3-2026-earnings-data-center-sales-q4-outlook/
- Chinese semiconductor firms CXMT and YMTC dominate global memory chip market - NaturalNews.com, June 01, 2026. by NaturalNews.com
- AMD takes on Nvidia with its Helios AI rack scale system. https://techcrunch.com/2026/07/23/amd-takes-on-nvidia-with-its-helios-ai-rack-scale-system/
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