AMD rides data center riches to ‘largest and most profitable’ quarter in history
AMD CEO Lisa Su said in the company's quarterly earnings call on Tuesday that Q3 2026 was "was the largest and most profitable in our history." AMD reported a record $13.4 billion in quarterly revenue, and it's predicting it will hit another record high next quarter of $17 billion. The company's data center business is […]
In a monumental quarter, AMD has posted an unprecedented $13.4 billion in revenue, setting a record high and predicting an even higher figure of $17 billion in the next quarter. The data center segment is the driving force behind this success, contributing $8.5 billion in revenue for Q3 2026. AMD CEO Lisa Su stated that over 80 percent of the company's revenue will eventually stem from its data center business.
CFO Jean Hu echoed this sentiment, foreseeing data center revenue to surpass 80 percent of total company revenue by 2027. Currently, roughly 63 percent of AMD's net quarterly revenue is generated from the data center sector. AMD's overall revenue growth of $1.9 billion in Q3 2026 aligns with the parallel increase in data center revenue, which grew by $1.8 billion over the past couple of years.
The surge in AMD's revenue mirrors the growth of its data center business. However, AMD's gaming division has faced a significant decline, down 40 percent year-over-year, reaching $773 million. The company attributes this slump to the recent price hikes in PCs, game consoles, and other tech, driven by shortages of RAM and components caused by demand from AI data centers.
The shortage might persist until 2030, according to Intel and SK Hynix. AMD acknowledges the price hikes, attributing the impact to the consumer markets' heightened sensitivity. They are preparing for a down year in 2027, considering the current environment.
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