$13.4 billion record quarter: AMD rides data center riches to its largest, most profitable quarter in history

Record growth led by data centers

On Tuesday’s earnings call, CEO Lisa Su described Q3 2026 as the company’s “largest and most profitable” quarter. AMD reported $13.4 billion in revenue, a record, and forecast another record of $17 billion next quarter.

Data center revenue reached $8.5 billion in Q3. Overall revenue rose $1.9 billion from the prior quarter, while data center revenue increased $1.8 billion, closely tracking the company’s overall growth.

Data center share may expand

Su said AMD expects revenue to grow more than 80 percent in 2027, with data center as its largest contributor. The company’s CFO, Jean Hu, said data center could make up more than 80 percent of total revenue looking ahead of 2027. That would mark a substantial increase from Q3 2026, when data center accounted for about 63 percent of quarterly revenue.

Gaming faces weaker demand

AMD’s gaming business generated $773 million, down 40 percent from a year earlier. The article links price increases for PCs, game consoles and other technology to shortages of RAM and other components, driven by demand from AI data centers.

Su said higher component costs affect system prices and can make consumers more cautious, adding that AMD had seen slower sell-through. She said the company was planning for a down year in 2027 under current conditions. The shortage may persist: Intel said it did not expect improvement next year, while SK Hynix forecast it could last until 2030.