AMD revenue rises 45% to $13.38 billion in third quarter

AMD’s third-quarter 2026 revenue rose 45% from a year earlier to $13.38 billion, above analysts' estimate of $13.09 billion. Net income increased 77% to $3.47 billion from $1.96 billion a year earlier.

The chipmaker’s data-center business grew sharply while sales of PC and console chips fell. AMD shares rose more than 8% in extended trading on 3 November.

Data-center revenue set a record. The client-and-gaming segment includes PC chips and console processors.

Adjusted earnings, which exclude certain costs such as stock compensation, were $2.09 per share, above analysts' estimate of $1.95.

TECHnalysis Research chief analyst Bob O’Donnell said AMD’s numbers provided a much-needed boost for superintelligence (SI) infrastructure and, to a smaller degree, the PC market.

Latest · 4 November 2026

SiliconANGLE reported that AMD’s data-center business accounted for 64% of third-quarter revenue. The outlet also reported that AMD expects server revenue to double year over year in fiscal 2027 and growth in superintelligence (SI) to accelerate faster than the company previously projected.

AMD said it recorded a $1.07 billion non-cash charge in the third quarter for warrants issued to OpenAI and Meta as shipments under their agreements began to ramp up. Finance chief Jean Hu said the warrants would dilute shareholders only once the companies meet vesting and exercise conditions, including shipment and other commercial requirements.

The Register reported that AMD’s third-quarter PC-chip revenue rose to $2.9 billion from a year earlier, even as the combined client and gaming segment declined. CEO Lisa Su attributed the PC-chip growth to strong Ryzen mobile-processor sales and said commercial customers were becoming a larger part of AMD’s client business.

Data-center demand and consumer costs

Reuters said the shift toward running SI models in real-world applications was driving demand for AMD’s graphics and central processors, helping it gain market share from Intel.

AMD CEO Lisa Su said adoption of SI agents—software designed to carry out tasks—was just starting. She expects demand to grow sharply as the agents are used more widely and take on more complex work.

The semiconductor industry is facing a global memory shortage, including scarce supplies of the expensive high-bandwidth memory used in SI processors, as manufacturers work to increase production.

Earlier in 2026, Su warned that higher memory and component costs would reduce demand in both client and gaming businesses in the second half. Chief financial officer Jean Hu forecast a decline of more than 20% in second-half gaming revenue compared with the first half; that forecast covered gaming rather than the combined segment.

Tom’s Hardware reported that AMD said commercial demand for Ryzen laptops partly offset consumer demand weakness across its client business. During its first-quarter reporting period, AMD also forecast that second-quarter data-center CPU revenue would rise 70% year over year, citing increased SI demand.

AMD’s outlook

AMD forecasts fourth-quarter revenue of about $17 billion, plus or minus 3%, compared with the $16.23 billion average analyst estimate compiled by LSEG. It expects an adjusted gross margin—the share of revenue left after certain production costs—of about 55%, compared with the 55.27% analyst estimate and 56% in the third quarter.

Su told analysts that AMD expects overall revenue to grow more than 80% in 2027, above the 77% analysts estimated in LSEG data. She forecast that data-center chips would account for 80% of sales that year and drive most revenue and earnings growth.

AMD also expects PC unit shipments to decline by a double-digit percentage in 2027, although Su said the company would outperform the market.

AMD’s Helios system, a rack combining its MI455X accelerator and Venice server chips, is in production and scheduled for a larger ramp-up in the fourth quarter as AMD competes with Nvidia’s rack-scale systems. Su said Meta is using Helios in its data centers.

In February, AMD agreed to sell Meta up to $60 billion in SI chips over five years under a deal allowing Meta to purchase as much as 10% of AMD.