AMD Reports Record $13.4 Billion Quarter Driven by Data Center Demand
Data center revenue reached $8.5 billion, while the gaming division fell 40 percent due to component shortages.
By Anthony Foster ·
AMD reported $13.4 billion in revenue for the third quarter of 2026, marking the highest quarterly total in the company's history.
Chief Executive Officer Lisa Su described the period as the most profitable in the company's history during an earnings call on Tuesday. The company projects it will reach another record high of $17 billion in the next quarter.
The data center business generated $8.5 billion of that total revenue. This segment now accounts for roughly 63 percent of AMD's net quarterly earnings. Chief Financial Officer Jean Hu stated that the company expects the data center division to represent more than 80 percent of total company revenue by 2027. Su added that overall revenue is expected to grow by more than 80 percent in 2027, with the data center sector providing the largest portion of that increase.
While the data center division expanded, the gaming business contracted sharply. Gaming revenue dropped 40 percent compared to the same period last year, falling to $773 million. Industry analysts attribute the decline to rising prices for random access memory and other components. These shortages are driven by high demand from artificial intelligence data centers.
Su acknowledged that higher component costs are affecting system pricing and consumer behavior. She noted that consumer markets are more sensitive to price changes and that the company has observed a slowdown in sell-through rates. Su said AMD is planning for a down year in 2027 based on the current market environment.
Other industry players expect the supply constraints to persist. Intel stated it does not anticipate the shortage improving next year. SK Hynix predicted the shortage will last until 2030.
