AMD rides data center riches to ‘largest and most profitable’ quarter in history

AMD’s third quarter of 2026 was its largest and most profitable in the company’s history, according to CEO Lisa Su. The company reported $13.4 billion in quarterly revenue, and it expects to hit another record high next quarter with $17 billion in revenue. The data center business was the main driver of this growth, contributing $8.5 billion in revenue for the quarter. Su said that the company is expecting its revenue to grow by more than 80 percent in 2027, and that the data center business will be the largest contributor to that growth.

AMD thinks over 80 percent of its revenue will eventually come from its data center business alone. During the earnings call, CFO Jean Hu said that, looking ahead to 2027, the data center business will be more than 80 percent of total company revenue. As of the third quarter of 2026, about 63 percent of AMD’s net quarterly revenue came from its data center business. Over the last couple of years, jumps in the company’s revenue have been closely mirroring its data center business. In the third quarter of 2026, its overall revenue went up $1.9 billion, while its data center revenue went up $1.8 billion.

As AMD keeps smashing its data center revenue records, its gaming business dropped 40 percent compared to last year, dipping to $773 million. PCs, game consoles, and other tech have been hit with price hikes over recent months due to shortages of RAM and other components, driven by demand from AI data centers. The shortage might not end anytime soon, Intel said it’s not expecting the shortage to improve next year, and SK Hynix predicted it’ll last until 2030.

Su acknowledged the price hikes, saying, “Our view is, this is one of those times, when, you know, component prices go up, it affects overall system pricing. One would expect the consumer markets to be more sensitive to that, and so we have seen a bit of a slowdown in the sell-through.” Su added, “We are planning with the current environment for a down year for 2027.”