AMD on track to overtake Intel as biggest x86 outfit
CEO says supply chain can cope with surging datacenter and AI demand
AMD anticipates generating more revenue than Intel in its upcoming quarter, potentially becoming the leading vendor of x86 processors for the first time. On Tuesday, the company disclosed its Q3 2026 results, revealing a 45% year-over-year revenue growth to $13.4 billion. The Data Center segment contributed $8.5 billion in revenue, marking a 97% increase year-over-year.
However, the client and gaming segment saw an eight percent revenue decline to $3.7 billion, outpacing Intel's performance. Intel projected revenue between $15 billion and $16 billion for its next quarter, indicating minimal growth. In contrast, AMD expects approximately $17 billion in revenue next quarter. CEO Lisa Su expressed optimism about the company's prospects, stating that 2027 will be a strong momentum year for both the CPU business and data center AI business.
She believes the overall company will grow by more than 80%, with the data center CPU business doubling and the data center AI business significantly outperforming. Su emphasized AMD's confidence in meeting the anticipated demand, noting that the supply chain has been optimized with secured wafers, substrates, advanced packaging, memory, and other critical components.
The company is also strengthening partnerships with supply chain partners to secure long-term capacity growth. Su expressed strong confidence in AMD's ability to sustain exceptional revenue growth in the years ahead. If the predictions materialize, AMD could surpass Intel as the leading provider of x86 processors, despite Intel's higher overall revenue due to its foundry operations.
While AMD is already the server CPU technology leader, it trails Nvidia in the GPU market but has outperformed Intel. Notably, AMD's declining client and gaming revenue could be a silver lining, as the gaming segment was a source of challenges. PC chip sales grew seven percent year-over-year to $2.9 billion, driven by strong sales of Ryzen mobile processors.
Su highlighted the expansion of commercial use of Ryzen PRO PCs among large enterprises, such as top banks, automotive companies, and healthcare organizations, as a positive trend. The positive reception from investors, reflected in a five percent after-hours share price increase, indicates confidence in AMD's future growth potential.
Written by urgent.news from The Register Science's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
